Outsourcing; Is It Right For You?

October 21, 2015

Outsource or In-houseIn business, profitability is inarguably an essential variable. Business owners and executives will typically adhere to almost any strategy that will improve their bottom line. The more profitable a business is, the greater the possibilities become. One strategy to enhance their budget’s ability to produce the best possible results is to outsource parts of the business’ operations. This typically provides some semblance of financial flexibility while improving company-wide productivity.

The question then becomes, would outsourcing aspects of your business improve your company’s ability to turn a profit? What kind of return can you expect on an outsourced resource? What are some of the negative aspects of relying on outsourced workers?

Outsourcing, or more specifically, offshoring, has garnered much debate in western society over the past two decades, especially around election time, where pro-business candidates always look to justify the current trends of outsourcing workers. In fact, in some circles there seems to be a social stigma attached to the practice. When running a business, however, decision makers often don’t have the same concerns as the masses, as turning a profit isn’t easy and maximizing revenue is the goal. Professional efficiency experts have roundly accepted the outsourcing process as being a beneficial way to keep productivity high, and costs low.

There are other benefits than just cost savings that outsourcing can provide though. Outsourcers are generally well-trained and proficient in the work that you need them to accomplish, and have the staff to meet your demand. Outsourcing also allows your staff to focus on core business practices where otherwise they may be bogged down with menial support task. Expedited timelines and project start dates are typical as well, being that there is no need to go through a hiring process.

While there are benefits to outsourcing, it does have some negative aspects. One major detriment, and probably the most relevant to any cost/benefit analysis, would be the level of control you would have over your outsourced employees, and their work. Outsourcers also lack the dedication that an internal employee may have, due to their very nature of working with multiple clients. Security is another issue since work is completed from another location of which you have no control over, and sensitive data can be exposed or handled improperly.

It’s important to weigh all the pros and cons of outsourcing before choosing to do it or not. Simply doing so for cost benefits could be detrimental to your business if the wrong things are outsourced or you outsource to an inadequate vendor.Do your research, and think it through!

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