Benefits of Outsourcing and the Other Side of It

Outsourcing
  • No matter the functions of your small business, you need people working with and for you in order to get things done and keep the business running.
  • Outsourcing work has become one of the most popular ways to find those people and get all the advantages.
  • But with the benefits of outsourcing there also come some disadvantages. Find out if outsourcing services will work for your business by reading below.

Sometimes, it can be best for your business to let others do certain tasks for you. These can come in the form of freelancers or companies. Either way, there are clear benefits to outsourcing work. Here are some of the benefits of outsourcing for your business:

1. You’ll get access to specialists

There may be things that your business may need that aren’t part of your expertise. These can be technical in nature such as building your website or mobile app. They can be for your customer service needs. Whatever it is, outsourcing work will give you access to experts in the field of your particular need. 

2. These specialists can get the job done faster and better

A team of specialists will work faster and more efficiently saving you time and money in the long term. Because whatever you need to be done will fall under their expertise, they will also tend to do a better job at it too. 

3. Saves you the hassle of recruitment

This is particularly useful for projects where hiring full-time staff to do the work would be both impractical and uneconomical. Also, finding experienced people to do certain tasks you could otherwise outsource can prove difficult and costly. For short term projects, it will be better to skip all of that hassle and send your work to an external company that already has this pool of experts on hand.

4. You’ll get to focus on the core of your business

Outsourcing work allows you to concentrate on what matters most in your small business. As a business owner, you’ll know the effort required to maintain and keep your business running. 

5. Outsourcing cost savings

Outsourcing work lets you cut down costs in multiple fronts. You won’t need to pay their monthly wages and associated bonuses, you won’t have to pay for employee insurance if your country requires it and you won’t have to invest on specialised machinery that may be required to do the job at hand. Outsourcing work will also let you tap into the global market of specialists.  Because the daily wages of employees will vary from country to country, you can opt to hire experts at a fraction of the cost of hiring a local without sacrificing quality.     

6. It can fill gaps on your own manpower

Even larger enterprises with multiple departments may find it difficult in bridging all of the gaps in their business needs. For small to medium enterprises, sometimes sending off even some of your business processes such as accounting, inventory management and customer support can go a long way in improving your profits.

Before you make up your mind on outsourcing work or not, you’ll also need to know the disadvantages of going this route.

  • It can be difficult to communicate your specific needs to someone working remotely
    Sometimes your needs may be so specific that it’ll need your direct supervision in order for you to realie your ideal vision. In this case, it might be more worthwhile for you to hire a part-time employee to work on your project. 
    An example of this was when I hired a firm to write copy for my site. Because of the technical nature of my business, most of the writers of that firm struggled to keep up with the terminologies. Their lack of experience in my particular industry also meant that what they wrote was hit or miss. It was faster (and cheaper) for me to write everything myself.
  • You can’t always be sure of their quality of work
    While most of these firms and freelancers may specialise on your specific needs, you can’t always be sure that the job that they do will be up to your standards. It’s best to research their current clients and find feedback on their outsourcing services before you push forward with hiring them.
  • Outsourcing your needs to another country may lead to communication problems
    While outsourcing work to other countries can help you cut costs due to lower wages in that region, it also opens up the possibility of miscommunication due to language barriers. These firms can also be on another time zone, meaning back and forth communications may take time due to the difference in office hours.

It really is up to you to decide whether the benefits of outsourcing are for your business. Don’t rush into the outsourcing band wagon unless you are sure that you absolutely need to and if you do, be sure to make sure you fully brief and clearly communicate your requirements while outsourcing work. 


Allan Bennetto

Allan Bennetto

Founder at JMango

Full time Founder, part time Bootstrappr. Love the surf, snow, startups, technology, music, arts, design, mobile and food. And lots of it. www.twitter.com/allanbennetto www.linkedin.com/in/allanbennetto www.google.com/+allanbennetto

JMango

JMango 12 FOLLOWERS

Information and communication technology


Questions

Anonymous asks

Comments (2)

User
Loading...
Wendy Huang

Wendy Huang , Full Time Blogger and YouTuber at A Custom Blog in 4 Minutes

I often find, outsourcing overseas is a huge change in mindset and everything. It will also increase your management time in the short term and lead to waste in resources too. Local outsourcing might be a better option for first time outsources, or have a middleman help you! Thanks for highlighting these key points, I've experienced most of these myself too :D

Sam Spence

Sam Spence , Owner & Virtual Assistant at Executive Virtual Associate

Thanks Allan for a great article highlighting the benefits and disadvantages of outsourcing. While outsourcing may not be for everyone, it's clear that communication is the key. For any partnership to work, both parties need to understand each other, be able to communicate clearly, be comfortable in asking questions and be available for each other when needed. Working as a VA, I've definitely found that the easiest and often more rewarding Client relationships I have are with great communicators!