The Biggest Advantage and Disadvantage of Outsourcing - To Outsource Or Not to Outsource

By Mary Thomas

As more and more companies outsource some of their jobs to offshore companies, the question regarding the biggest advantage and disadvantage of outsourcing crops up in business-related discussions all over the world. In recent years, it has become simpler to outsource jobs overseas thanks to developments in technology specifically when it comes to computers and the Internet. Without a doubt, outsourcing offers plenty of benefits to companies. But it is also true that the trend has its own set of disadvantages. If you are concerned with the pros and cons, the advantage disadvantage outsourcing presents, then you have come to the right place. This article is all about the advantage disadvantage outsourcing brings to businesses.

The biggest benefit of outsourcing is of course the monetary savings that it provides. Companies that have been employing outsourcing measures for quite some time now can attest to the big savings that the practice gives. Countries such as India and the Philippines are a treasure trove of cheap but good workers. In order for a business to grow, it needs to earn more than what it is spending. Let us face it, labor in the west is anything but affordable. And if you will stick to hiring professionals onshore, there is the big possibility that you will be left behind in terms of growth by your competition. While outsourcing is taking away jobs in the local front and taking them abroad, it also builds businesses. This is the reason why many economies, despite the perceive economic disadvantage that it brings, believe that it is a practice that brings more good than harm to the economy of the U.S.

The biggest disadvantage of outsourcing therefore is outweighed by its biggest advantage. It is best for companies to keep this in mind when trying to make a decision on whether to outsource or not. On a company level, outsourcing also presents some challenges that make others think twice about joining the bandwagon. For example, there always the risk of getting less than quality work when letting some company or individual offshore to do some of the important task of your business. Cultural and geographical barriers as well as discrepancies when it comes to communication technology can also present some problems for companies who are looking to have business "partners" abroad.

The best way to limit the risks and the challenges involved in outsourcing is to hire the service of a company that will manage outsourcing tasks for you. These companies are adept in hiring workers or acquiring the service of service-providers from other countries and are familiar with the ins and out of the practice. If you really want to get the most out of outsourcing, then getting an outsourcing manager is the key and it is actually the secret of many companies out there. If you want to outsource work without experiencing the hitch involved, then you must hire a professional that will manage your outsourcing work for you and your company.

Advantages & disadvantages, outsourcing has them both but there are things that you can do to minimize the bad effects and magnify the good ones.

Outsource Method Saved Me Over 500% On My Staffing Costs

Outsourcing can be a very costly and mistake ridden path if you dont have the connections or know the pitfulls. When we Interviewied the CEO of RentACoder.com we were amazed at how many buyers get this wrong.

Learn how to save yourself mistakes that could cost you 10's of thousands of dollars and how you can more effectively manage your business process outsourcing.

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