When Outsourcing Is Not a Good Idea


When Outsourcing Is Not a Good Idea

There are many advantages to outsourcing. Lower labor costs, higher profits, a bigger workforce, industry experts at your disposal, and more flexibility. You can visit an outsourcing website to find the right person or staff to carry out your project and tasks to your liking. Outsourcing services are full of professional, skilled, and talented people who are experienced at doing the kind of work you need finished. On the other hand, there are times when outsourcing isn’t the way to go and it’s best to have the work done in-house.

One would think that outsourcing could never be a bad idea, because of the lower salaries you have to pay, the increase of production, and the elimination of benefit packages you would have to provide, like health care, social security, and workman’s comp. However, there are times when it is actually expensive to outsource. For example, when the cost exceeds your budget. Or when the team or individual requires a higher salary or has advanced degrees or specialized skills.

Another reality that could cost you money by outsourcing is the fact that you never have direct control over a project or the team, because you will never be on site to supervise or micromanage. You will be leaving the direct supervision to a team manager, and this could become complicated if he or she can’t carry out your project to your specifications. It could end up with failed projects, loss of profits, and a poor reputation.

If you decide to outsource a project, make it clear that you want access to records and files. This may be the only way to track true progress and productivity. Another thing you can do to maintain a little control over the project is to schedule meetings via Skype or conference call. At these meetings you will check quality and progress. Some contracts don’t allow outsourcing. Find out up front if the contract you’re considering permits it. Heavy penalties, including fines or legal action, could result if you violate a contract. Another option you can consider is outsourcing the work locally instead of from an under-developed nation. The key is to find an individual or a team willing to work for low pay. This will most likely eliminate any language or culture barriers you may encounter with offshore outsourcing. And you may also have an easier time supervising the project.