The Advantages And Disadvantages Of Outsourcing

The Advantages And Disadvantages Of Outsourcing

Are you familiar with outsourcing? Do you know that outsourcing is very in demand these days? Generally speaking, outsourcing is the term used to denote the process in which a company hires another service provider to perform the other services or work by the company instead of hiring full time workers in-house.

Outsourcing is the latest trend today among companies in different fields. But, actually, this process is already known and utilized by some companies even before it became popular. Companies turn to outsourcing because of several purposes. More often than not, businesses prefer to outsource those services that are really not the specialty of the business or those functions that require expert skills that are currently unavailable in the industry. There are many advantages and disadvantages of outsourcing. If you want to know what these outsourcing pros and cons are, then you are reading the right article.

It is undeniable how the economy is doing whenever some financial uncertainties occur. There are some companies who remain standing still even with so many difficulties that they encountered along the way. Most of these companies became successful because of too much hard work. So, if you want to stay on top of the competition, you need to push a little bit harder. And the only way to keep you alive in the competition is to outsource some of your services.

In view of the fact that there are some outsourcing pros and cons, it is imperative to weigh both aspects before you start outsourcing. This is a very important decision to make. But in making a decision, you have to make sure that you take into account all the benefits of outsourcing to your company, particularly on the production as well as profit margin.

Here are the pros when you outsource your services:

1. Huge savings on the production cost

Compared to hiring in-house workers, you get to enjoy great savings on the production when you opt for outsourcing.

2. High quality service

When you outsource, you are sure that you will be getting the quality services that you deserve. This is attributable to the fact that most third party service providers offer excellent services that your business need. It is the objective of every outsourcing service provider to provide you with the best services to correspond to your specific requirements.

3. Opportunity to get expert skills

Most of the third arty service providers are equipped with the best know-how and skills on the service that it offers. By outsourcing, you are able to access the expert skills of individuals whom your business needs to run its day-to-day activities.

On the other hand, the following are the cons of outsourcing:

1. Social responsibility

Outsourcing a service to a foreign land usually leads to lesser employment opportunities in the country where the service is outsourced. This violates the social activities of the company that is outsourcing the service.

2. Language barrier

This is often the disadvantage of outsourcing services among call centers that outsource calls to foreign nation since the first language used by the people in that nation is very different from the country outsourcing the services. The result is poor quality of call handling.

3. Knowledge of the company

Of course, in-house staff is more knowledgeable about the company’s basic services compared to the third party service provider that you hire to outsource the other functions of your business.

On the whole, it is recommended that you think about carefully which function you will outsource. Considering the outsourcing pros and cons will help you arrive at the right decision that is best for your business.

Source: EzineArticles
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