Bartek Zdunek Outsourcing

Can outsourcing be stoped

Can Outsourcing Be Stopped?

Outsourcing is whereby you get your work done by an outside firm/company. Along with work, you delegate accountability and responsibility too. It has its own benefits and some disadvantages as well.

Some business people are against the practice of outsourcing. Let’s see some of the reasons which stop them from delegating their work to someone else.

Cons of Outsourcing

Loss of in-house jobs:

When you outsource, the workload in your company is reduced substantially. This reduces the requirement of the employees in the company.

No transparency:

When you outsource, it is possible that the outsourcing company further transfers the work.

For this reason, several companies are indulged in the project of the company. If something wrong happens, it is difficult to hold anyone responsible. Also, at last, the outsourcing company will be held responsible because the work was done under their company name.

Slippage of labor and environmental standards:

Some people believe that labor and environmental standards are slipped when the work is outsourced. Also, small businesses and farms are crowded with work in developing countries. This may lead to a lower quality of work. 

Outsourcing may increase costs: Outsourcing does not always give you fruitful results. If the work is not done correctly, is of lower quality, or simply doesn’t meet the deadlines, your business may be negatively affected by outsourcing. Negative results mean increased costs.

Also, the vendor may simply charge higher than what could be done at lower prices in-house.

This is for the cons of outsourcing. But if you have a well-designed outsourcing strategy, find the right person/company to outsource; it will help your business grow. 

The disadvantages, as mentioned above, can be dealt with. They can be eliminated. All you need to do is thorough research before delegating your work. 

Can outsourcing be stoped
What do you need to check before outsourcing?

Cost-saving:

When you hire men or equipment, they should reduce your costs. Compare the prices of in-house work and outsourcing and make an informed decision.

Prices:

Check out the costs of different vendors. Choosing the cheapest vendor may not be a smart decision. Instead, analyze the talent, services, etc. from different people and choose that best suits your requirements.

Trustworthy:

Determine the trustworthiness of the outsourcing company. They should not share your business information with third parties. When you check on their credibility, outsourcing is a good option.

Effective Communication:

Check that effective communication can be established between you and the vendor. This will be required for monitoring, follow up, etc. If you fail to establish contact, your outsourcing effort may fail.

Create SLA:

SLA or Service Level Agreement should be created when you outsource the work. Mention every single detail that you want the vendor to abide by in the SLA.

Know who is working:

When you outsource, ask the vendor about who will do your work, who will lead the team, etc. You can analyze the effectiveness of those workers. When you are convinced, you will not have to worry every now and then about the work. It will be done correctly when in safe hands.

Limit liabilities:

Certain work burdens you with obligations while in process. When you outsource, the liabilities are also outsourced. Check if your delegation can limit such liabilities.

Supervision:

That outsourced work that requires minimum supervision is considered excellent. If it needs regular monitoring, you may waste a lot of your time, and outsourcing may not be beneficial to you. So delegate when minimum or no supervision is required.

Deadlines:

Outsourcing will be a success when the work is delivered on time. Check how punctual are your new vendors. You can do so by checking their previous work.


Resources:

Your vendor should have the required resources and technology to complete your work. You can visit the office of the vendor and inspect what they have.

Can outsourcing be stoped

Thus if you check all these things before outsourcing, you will undoubtedly succeed. 

Thinking that outsourcing can stop is just as crazy as quitting the cars and moving around on horses and carts. Stopping the use of mobile phones and using telegrams to communicate, leaving the internet, and using books. Need not to say, if this happens, we will move backward to the 18th century.

These things will hamper your growth. Thus, outsourcing is one of the significant aspects of business growth in the years to come. Although automation is reducing the rate of outsourcing, it is still beneficial for many businesses.

Many of the big companies like Microsoft, Google, Basecamp, etc. outsource their work. Imagine the resources and equipment they might have. Still, they feel the need to outsource.

The critical question here is what you should outsource and what you should do yourself.

The answer is simple. Profits decide. Check what functions you can transfer to reduce costs and to yield more benefits.

Profits are dependent on several factors. These include the quality of products and services, costs, prices, etc. So check all these and analyze what to delegate.

According to a report from global property firm Cushman & Wakefield, outsourcing will increase by up to six percent in the next six years.

The increasing number of Business Process Outsourcing (BPO) in the developing country suggests that the work at large scale is being outsourced to these countries. These BPOs provide services such as payroll, human resources, accounting, recruitment, customer care, etc.

Thus, the number of in house employees is decreasing. And of course, we can see how fast the companies, including the startups and small enterprises, are increasing.

Those companies who do not have access to several resources, including talented employees, outsource their work to stay and grow.

Most developed countries outsource to India and the Philippines as these countries consist of a large number of English speaking individuals. India though tops the race. This is because the Indian workforce gets aid from the government to work virtually, and they work from the office, unlike the employees from the Philippines, where employees usually work from home.

How would you decide if outsourcing is right for you or not?

If you need the work immediately:

If you need a piece of work done quickly, you should outsource it. This is because if you choose to work in-house, you need to hire new employees.

The hiring of new employees is a lengthy process. Also, after hiring, you need to train them, which takes even longer. Additionally, there is no guarantee that the employee on which you have employed your months will prove to be efficient.

If this new employee is inefficient, you will have to fire him and look for another employee. Thus the cycle is repeated, and a longer time is required. In this situation, you better outsource.

When you outsource, the vendor is an expert in his niche and can come up with quality work and on time. And, if he does not work as per your expectations, you can transfer the job to someone else.

You don’t have the skills:

According to a survey by Quartz, 18% of the startups fail because they didn’t have the required knowledge, skills, or experience to complete the job.

In this situation, outsourcing is the best option. You can choose vendors who are in the market for several years and can come up with new ideas.

You have fewer employees:

If you have fewer employees and the work is too much, than overloading your employees is not a good option. 

In this case, you can better outsource your work. This will keep your employees relaxed and motivated.

You can’t afford new resources:

If your work requires the use of advanced technology or a large number of employees which you can’t afford, outsource.

Can outsourcing be stoped
Tips for successful outsourcing

Create a plan:

Before you delegate the work to a third party, strategize and plan what you want to empower and what you would like to do yourself.

This plan can be based on the number of resources you have, time consumption by each task, the expertise required to accomplish it, etc.

Determine the objectives of outsourcing:

Determine whether you want to outsource to cut costs, to get better quality work, to use modern technology that otherwise you don’t have access to, etc. This will let you know which task to outsource to get the best results. Also, you would be able to pitch the right outsourcing company/person.

Check different vendors:

Once you know what to outsource, you know the type of vendor you are looking for. For example, if you choose to outsource writing content for your website, you need to contact different freelance writers. Get quotes from several freelancers.

Don’t select the cheapest at once; choose the one that provides beat services apart from lower prices. 

If you think selecting the cheapest would be great, you are wrong. If he doesn’t deliver exceptional results, the small amount that you invest in such a writer will also be lost, causing you loss of time as well.

Create deadlines:

Set deadlines for every project you outsource. The vendor should meet those deadlines. If not, you can move to some other vendor.

Create SLA:

Create a contract and mention all the details in it. For example, the number of working hours, legal rules, time of delivery, mode of delivery, payment terms, consequences in case the vendor doesn’t deliver on time or compromises with the quality, etc.


Communicate often: Communicate with the outsourcing firm regularly. Keep follow up. Ask if he needs some help and act accordingly. But never overdo it.

For it will either demotivate or irritate the vendor. Thus he may not be able to complete the project on time.

Conclusion

Outsourcing can’t be stopped. If it is stopped, several businesses will be stagnant. There will be fewer new business entrants.

Outsourcing, when done smartly, can help you reach sky-high levels. So outsource but plan before you do it.

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Ruth Mitchell
Ruth Mitchell
1 year ago

I totally agree to this, outsourcing can never be stopped.
Even I outsourced my some non core tasks, now planning to outsource my accounting tasks as well.
Hope it goes well.

Jessie Bell
Jessie Bell
1 year ago

There are so many options available in form of vendors or freelancers, if one option is not upto the mark, work with other.

Jay Bailey
Jay Bailey
9 months ago

Unique headline.
One out of Three businessmen needs the help from outosurcing
Businesses from several sectors, including information technology, may employ outsourcing to keep up with changes and survive the competition.

Loralee Humes
Loralee Humes
11 months ago

Outsourcing is the gateway for dynamic capabilities, market-oriented innovation, strategic flexibility, and agility.

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