- Outsourced services cost much less than building an in-house team of the same size, often because the standard of living, labor costs, and infrastructure costs at the outsourced location is lesser.
- Finding individuals with specific skill sets is easier when businesses outsource.
- Action items and tasks can be clearly defined and outsourced companies can be held responsible for their activities and results.
- Shared responsibilities leads to better efficiency and higher productivity.
It is quite evident that outsourcing plays a big role in today’s business world, and as an organization, leveraging the benefits of outsourcing is often the smarter route.
However, there are a few pitfalls to outsourcing, which need to be weighed in by organizations before outsourcing any services:
- Since outsourced teams are often cut away from the organization and working through an intermediary, their understanding of the requirement might not be accurate, thus affecting the result or end product.
- It is possible to lose control of the services that have been outsourced and rely solely on the ability of the outsourced team to provide quality results.
- Outsourcing creates a vulnerability to confidential and secure data.
- The market recognizes the tie up between brands, and the outsourced company’s brand reputation will impact your own organization’s brand value.
- Without a proper system, out sourcing can deviate from original goals that can result in solutions that are not effective in delivering results or hard to maintain.
Without a proper system, out sourcing can deviate from original goals that can result in solutions that are not effective in delivering results or hard to maintain.