Considering the Effects of Outsourcing

1. 12/28/22, 12:50 AM Considering the Effects of Outsourcing | by Jackson White | Dec, 2022 | Medium Open in app Sign up Sign In Search Medium Jackson White Follow Dec 27 · 3 min read · Listen Save Considering the Effects of Outsourcing Outsourcing has been around for many years. The term has been used to describe a company’s decision to transfer part or all of its operations to another company, usually located in a different country. The idea behind outsourcing is that by doing so, the firm can reduce costs and increase profits. As time passes, it seems that more and more companies are outsourcing their operations or at least considering it as an option. However, there are some people who do not agree with this practice and they have several reasons why they think outsourcing is bad for business. Some of these reasons include: https://medium.com/@mr.jaxwhite/considering-the-effects-of-outsourcing-9aac8a17aaeb 1/4

2. 12/28/22, 12:50 AM Considering the Effects of Outsourcing | by Jackson White | Dec, 2022 | Medium Companies lose control over their products or services because they are now being managed by someone else. If something goes wrong with the outsourced operation, it will be difficult for a company to fix it since it does not have control over the process anymore. In order to make sure that outsourcing works out well for both parties involved (the client and contractor), there needs to be good communication between both parties before any information is transferred or sent over to the contractor’s office or location. Pros of Outsourcing One of the best ways to help your business expand is to outsource. It enables you to outsource tasks that aren’t your core competence so you can concentrate on those. The term “outsourcing” can refer to a wide variety of activities, such as: Offshoring means finding a cheaper workforce in another country. Employing temporary workers such as consultants and contractors instead of permanent workers. Business process outsourcing refers to the practise of contracting with a third party to perform a variety of traditionally in-house tasks, such as customer service or accounting. Cons of Outsourcing Though outsourcing can help you save time and money, it’s not without its drawbacks. Raise in Expenditures While there are situations in which outsourcing can be cost-effective, this is not always the case. It is possible to overpay if you decide to outsource tasks that require a lot of manual labour. Control Abandonment https://medium.com/@mr.jaxwhite/considering-the-effects-of-outsourcing-9aac8a17aaeb 2/4

3. 12/28/22, 12:50 AM Considering the Effects of Outsourcing | by Jackson White | Dec, 2022 | Medium You will have less say in the final product if you hire someone else to do the work. No one is available to assist you until the person doing the work returns from vacation or whatever other reason they were absent from their position at the time of the problem. Having trouble communicating Some people aren’t naturally gifted communicators and may struggle to find common ground with someone who doesn’t share their native language or cultural background. Inappropriate disclosure of private information increases the risk of misunderstandings and other complications, such as fraud and identity theft. There has been a growing trend of outsourcing to the Philippines for quite some time. Companies first began realising the benefits of outsourcing to the Philippines because of the country’s highly educated labour force, convenient location, and low wages. If you want to get in on the action, outsourcing to the Philippines is a great option. Outsourcing to the Philippines is a good idea for the reasons given here. 1. It will save you money compared to using domestic labour. 2. When you outsource, you have access to workers from all over the world. 3. It helps you achieve more with fewer resources. 4. Cross-cultural communication is made easier. Offshoring isn’t for every company, but when it’s the right fit, it can bring significant benefits. Offshore companies may seem like a less appealing option at first, but it can become more appealing as management considers all of their options before outsourcing any processes or services. Companies should consider outsourcing if it allows them to reduce costs without sacrificing quality in certain areas of production. However, it leaves the company open to risks and highlights flaws in the business model that need to be addressed. Although outsourcing is not a magic solution and should not be used in place of in-house expertise, it can be an effective addition to other approaches. https://medium.com/@mr.jaxwhite/considering-the-effects-of-outsourcing-9aac8a17aaeb 3/4

4. 12/28/22, 12:50 AM Considering the Effects of Outsourcing | by Jackson White | Dec, 2022 | Medium Outsourcing Offshoring Outsourcing Philippines Offshore About Help Terms Privacy Get the Medium app https://medium.com/@mr.jaxwhite/considering-the-effects-of-outsourcing-9aac8a17aaeb 4/4