What are the Benefits of Outsourcing? What are the Disadvantages?

2

Answers

  • AijaBecikAijaBecik subscriber Posts: 1 Member
    edited December 2017
    I personally think, that there are few main advantages of outsourcing. Firstly, it’s easier to find best specialist than to build your own team. For example, there are many global companies that outsourcing different operations in Eastern Europe. For example, there are many global companies in Lithuania due to high number of talented people. Secondly, it helps to cut the costs as labour of costs are way cheaper in Eastern Europe, that in Eastern Europe. Thirdly, it helps to focus on core business activities. But companies should consider disadvantages too. For example, there is a lack of control as person is not working on-site, it can be difficult to maintain the level of control. Also there is a possibility of losing company's data so company should make sure that they do regular checks.
  • Emma_EEmma_E Nashville, TNsubscriber Posts: 5 Member
    Thanks for providing the great 'Pros' and 'Cons' of outsourcing. I'm struggling with giving up tasks. I think to great agressively I will have to outsource some responsibilities. Everyone has talked about outsourcing in general. I would be interested in knowing what you think is the first items you should outsource, and what (if any) you should never outsource.
  • Ryan O'BlenessRyan O'Bleness Birmingham, Mich. administrator Posts: 1,118 Site Admin
    edited December 2017
    @Emma_E, though I am no expert, it seems that you should prioritize based on your skill level of each task. If you are a great writer and great marketer, then do those tasks yourself. However, if you have trouble with accounting and website development, then perhaps you should look into outsourcing those two jobs to the most qualified person or company (for each task). 

    Either way, if I was outsourcing any part of my business, I would do extensive research and due diligence to make sure the job is getting sent to the best possible person or business. Just my thoughts. 
    Ryan O'Bleness
    Community Manager
    StartupNation, LLC
  • Emma_EEmma_E Nashville, TNsubscriber Posts: 5 Member
    @"Ryan O'Bleness" great points. You made me think of a similar way to look at it: "What do I hate to do?" Outsource the joy killers that are non critical.
  • Donna MooreDonna Moore subscriber Posts: 4 Member
    All pros and cons depends on country where you want to relocate your business. As far as I'm concern, the best place for such outsourcing companies is central and eastern Europe. The main pros is that you can pay less.
  • Louis RussellLouis Russell subscriber Posts: 3 Member
    To make outsourcing beneficial to your company, you just need to set your mind on the results you want to achieve and find a trusted worker. If you pay more time to planning and defining the goal there won't be any hidden costs. Of course, team of experts whose primary job is to accomplish the required task will do it better than just reqruited worker. Outsourced IT company which develops custom software for ten years, or SEO agency which knows all ins and outs of site optimisation will deal with the problem faster. And in business speed is everything.
  • PEOCbackOfficePEOCbackOffice Rm. 302, 3F Viosil's Bldg., M.H. del Pilar, Taal, Molo, Iloilo City, Iloilosubscriber Posts: 3 Member

    There’s a lot more advantages for outsourcing business functions other than just the main goal of reducing costs. For one, it gives you an opportunity to pick from a vast pool of talent. It enables access to highly skilled and university educated employees, especially from English speaking foreign countries. With the increasing demand for employees equipped with the right skillset, developing countries can offer human resources that can fulfill the needs of the organization. Another advantage is the difference in time zones. Having a workforce that is ready for a round-the-clock operation provides an outstanding opportunity to cater to the client’s ever-changing needs whenever they require it. This equates to a quicker and superior level of service which then results to an overall better customer experience. Lastly, you get to focus on the main office while the back office operations are being handled by a dedicated team working towards achieving the objectives of the organization. Many businesses are hesitant to hand over control of part of their operations to a third party, and that is understandable. With outsourcing, however, all that’s needed to be done is to train the staff and provide direction and everything else is done the way you want it to.

  • m.milliganm.milligan subscriber Posts: 9 Member
    When I started my Heating and Air conditioning business I outsourced a lot of areas of the business since I was focused on the work I did well. Every year I looked at what I was paying others that I could make more money on if I had in house workers or equipment. Over 20 years I slowly started performing everything in house. 
    i would always look at could I do it, can I make money if I do it, do I enjoy that part of the business. If you don't enjoy that part of business you should probably outsource it.
  • Justin evansJustin evans subscriber Posts: 69 Bronze Level Member
    With the ever-increasing drive to improve operational efficiencies and reduce costs through technological advancements, there is a growing number of IT projects, and a company’s success or failure is depending on its ability to complete projects on time, to specification, and within budget. An organization’s IT needs change at a rapid pace and developing in-house capabilities to cater these changes is a highly expensive and risky endeavor especially given the fact that in today’s business world failing to keep up with the IT innovation curve can lead to disaster for the company. Keep on reading about benefits of outsourcing here.
    I'm qualified Software Engineer and Marketer Performing my responsibilities with due professional care and competence. Recently I am working on projects for On Demand industry like ODTap and Cabstartup
  • saravanansaravanan subscriber Posts: 389 Silver Level Member
    Cost Saving
    Flexibility
    Specialization
    Reduce workload
    Accountability

  • ananyadesignsananyadesigns subscriber Posts: 10 Bronze Level Member

    Factors to consider before finalizing a freelancer or a Digital Agency for Outsourcing.

    Now that we have established how a freelancer and a full-service digital agency work, we have shared the most important factors that you need to take into account before hiring a freelancer or a full-service digital agency.

    Project Requirement

    If you only have the requirement for a specific skill-set, for example, a logo to be designed or a Virtual Assitant then a skilled freelancer is a perfect choice. On the other hand, if you are looking to design and develop a website or mobile application it is always preferred to hire an agency since multiple skillsets from design to development and copywriting, marketing will be involved. It’s a tie

    Individual Skill Level

     Considering the overall analysis, if you expect the job to be done right the very first time or has complexities involved, then it is better to opt for a full-service digital agency. Winner: Agency

    Project Management

    Handling multiple freelancers is difficult than contacting with a single person for an overall modification or update in the project. Thus, it is clear that that overall project management becomes very easy once you opt for a full-service digital agency. Winner: Agency

    Contingency Planning

    When it comes to the requirement of contingency planning for the completion of a project on time, it is definitely better top opt for a full-service digital agency. Winner: Agency

    Turn Around Time

     If you are on a tight schedule and it’s imperative to get the job done ASAP for your business requirement, you should always opt for a professional full-service digital agency. The turnaround time for a digital service agency is less compared to freelancers. Winner: Agency

    Ad hoc Flexibility

    Under such circumstances, if you are looking to hire people with flexible work hours and schedule, then it is better to hire professional freelancers instead of a full-service digital agency. Winner: Freelancer

    Testing and Launch

    If you are looking for a reliable and error-free service for your product testing and launch, then it is definitely better to go for a full-service digital agency. Winner: Agency

    Ongoing Maintenance

    Ongoing maintenance and support is something that can be offered only by a full-service digital agency. With proper resources, a digital agency can keep track of the condition of your website, mobile application, and update them according to the requirements of clients. Winner: Agency

    Budget Allocation

    So, if you are looking to save a few bucks and what you want to get done is not for the long run, then you can opt for a professional freelancer. The other option that you could look at is to look for an offshore agency. Hiring an agency or a freelancer means you are outsourcing the work anyway so why not look for offshore outsourcing to have the best of both worlds. Winner: Freelancer

    • So to wrap it up..

    • From the overall analysis of a full-service digital agency and professional freelancers, it is evident that both of them have their merits and demerits. The choice ultimately comes down to the project requirements of a client. In general, it is definitely better to opt for a full-service digital agency because of:

    • Varied and better skill level of the team members
    • Better project management and communication
    • Getting things done on time and not missing deadlines
    • Lesser hassles and efforts needed
  • Blazho GjorgievBlazho Gjorgiev Macedoniasubscriber Posts: 12 Bronze Level Member
    Outsourcing today is not what was before 2-3 years ago.I must admit that several guys who do VA for me become own entrepreneurs at some point.Today mostly you get nothing for the job you are paying.Maybe is lame but today VA charge 1$ per hour.What do you think ,what kind of quality you will get for it. 
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