Outsourcing pros and cons
Outsourcing is the process of assigning a company’s business processes to an external agency.
Scaling down this definition, it means that the person doing the work cannot claim
to be an ’employee’ but rather a ‘consultant’ at best.
This limits the direct association with the company, business, individual and final product.
The most common departments that are established as regularly outsourced,
have little to do with the actual money making functions of the business.
This usually means indirect needs such as legal requirements, web design and maintenance,
human resource recruitment and any other information technology.
Direct needs (such as manufacturing) can also be outsourced
but this direct involvement comes with much more risk.
Before involving an outside entity in a business you will want
to consider carefully the pros and cons.
Saves time and money
Management of employees is eliminated.
Personal issues and negotiations are no longer a going concern.
All the day to day struggles with employees are eliminated by changing
your status from employer to customer.
Speed and Quality
Another benefit of being a customer is that quality of service is now their concern.
If they want any future business from you they need to deliver in a competitive way.
Furthermore, the fact that they specialize in the service being provided
means that they should have more expertise in the field than you do.
Ever project is essentially a new job and therefore the quality is being assessed each time.
If quality drops, need change or a competitor offers more,
there is no cumbersome procedure to change the provider of the service.
Growth is no issue
The expanding or contracting of your company size
does not change your entire human resource budget.
You may be able to complete one particular project that would have required
fifty new employees without dealing with that kind of headache.
Possible loss of privacy and control
In my opinion the most dangerous of the cons is the possibility
that your business processes may no longer be confidential.
It is also not desirable to have another entity influence,
control or dictate any aspect of your business, even if it may be necessary.
Due to the fact that your project may be one of many,
there is no guarantee that you are at the top of the ‘to do’ list.
As a matter a fact we can be sure that someone who is paying them
triple the amount that you are is their priority.
It is a common complaint that outsources goods and services
take much longer than expected because of reduced control.
I however would argue that there is not that much more control
when it is a direct employee besides the fact that you can vent about it face to face.
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It does not make sense
to do everything yourself.
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