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Outsourcing – Advantages and Drawbacks

Klaudia Sicińska, 10.09.2020

Outsourcing – Advantages and Drawbacks

Outsourcing is the practice in business, where particular services are performed outside the company by external people. For most companies, regardless their size, this is a good way to cut costs. To take advantage of this, first you would need to do research about the client, to ensure that the work is done reliably and on time. When we decide to cooperate with a given company easiness in contacting each other plays a very important role.

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So let’s have a look at the positive sides that outsourcing brings us:

  • Thanks to delegating certain tasks to external companies, there is no need to hire people full-time, which allows the business to reduce costs. A specific amount is allocated for the performance of a given service, so the money saved can be invested in further development of the company.
  • This phenomenon gives new unlimited possibilities. In this case, when we do not have one person employed, the company can expand its horizons and employ various specialists depending on specific needs. Then, the company’s flexibility increases, which is important in such a dynamically developing business world.
  • Outsourcing allows the company to implement more projects simultaneously. Due to the fact that you do not have to spend time on hiring and training new employees, your company can use the services of specialists that you can easily find information about and check previous works, so as to get to know that they are good in a specific field.
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On the other hand, there are some disadvantages that you should consider before starting your outsourcing adventure.

  • The first problem that may arise, is the inability to control the work, as if it was done by your employee, which is why it is so important to know with whom you start working. It is always worth reading the reviews or asking friends for their opinions. Therefore, giving guidelines for what we want to achieve and estimating the time, does not necessarily have to go the way we pictured in our head.
  • As mentioned at the beginning, communication plays a huge role. Many people complain about the way of communicating with each other, which is perfectly justified because it is the key to productive and pleasant cooperation. If you are hiring someone from another country or time zone, it is worth remembering about possible language problems and the difference that occurs in time.
  • It is extremely valid, to ensure the security of all data related to your clients and your company. Currently, the great importance should be attached to the protection of personal data, so it is worth taking care of it, so that there are no shortcomings.
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To sum up, outsourcing can bring a lot of positives for a company, but before you decide to take this step, you should think that through carefully, to protect your company against potential risks.

Sources

Jane, Mary “What Are the Benefits of Outsourcing for Small Businesses?” (July 15, 2020) <https://smallbusiness.chron.com/benefits-outsourcing-small-businesses-23334.html>

“Outsourcing” (July 15, 2020) <https://www.entrepreneur.com/encyclopedia/outsourcing>

Overby, Stephanie “What is outsourcing? Definitions, best practices, challenges and advice” Nov. 06, 2017. (July 15, 2020) <https://www.cio.com/article/2439495/outsourcing-outsourcing-definition-and-solutions.html>

Patel, Deep “The Pros And Cons Of Outsourcing” Jul. 17, 2017. (July 15, 2020) <https://www.forbes.com/sites/deeppatel/2017/07/17/the-pros-and-cons-of-outsourcing-and-the-effect-on-company-culture/#6b7bb733562d>

Riggins, Nash “20 Advantages and Disadvantages of Outsourcing from Your Small Business” Feb. 21, 2017. (July 15, 2020) <https://smallbiztrends.com/2017/02/advantages-and-disadvantages-of-outsourcing.html>