This is the 21st century and it is all about finding the best possible ways to get the work done in the least possible time and the least cost. Here is when the phenomena of outsourcing come in handy for organizations. Outsourcing is a business strategy in which the company moves some of its work to people outside the organization.
The key to trusting someone with your work outside the organization can be done by negotiating and signing agreements with the vendors who will be performing the task on your behalf.
Why outsource?
Outsourcing helps the company to keep its focus on the core business while the other odd jobs can be done by someone else. It is also a strategic move by many companies that want to have good customer service, decrease costs and high-quality work. Outsourcing work can be permanent or individual by which you can fill gaps without the hassle of permanent hiring or lay-offs.
Now that you know why you should outsource your work let me add on to the advantages of outsourcing the work.
Advantages of outsourcing tasks
Costs saving
If you hire someone to do the work temporarily you wouldn’t be hiring them as your employee which means that it will reduce the costs of employee compensation, medical insurances, office space and other costs linked to providing space to the employees.
Emphasis on core business
If you outsource some of your work to another person which means that you can shake off some of the load off your shoulder and without any worries focus on the main work and make it perfect.
You get experts
As much good as your core team is, not every team can have every skill because we are naturally human and have some lacking. When you outsource your work you will hire an expert in that field which will make you end product flawless.
You can work around the clock
If your business is global that means that you need someone attending your business every moment of the day. In this situation, if you outsource your work to an overseas company it means that they will be answering your clients when it’s night time at your side of the world. This is the main reason for what companies partner with a Employer of Record Company. To streamline some processes while they can focus on their main tasks.
No office politics
While having an office and employees has its advantages, a headache it brings with itself is the employee politics which often solving is difficult and brings you into sticky situations. Outsourcing work means that would mean that you won’t have to deal with employee troubles.
However, outsourcing also involves risks which you should consider before you outsource.
Disadvantages of outsourcing
Communication issues
If your hired company people speak in a different language it can cause you to have serious problems when you explain what you want them to do. Also, if they live in another part of the world they might not be available on the time you’re up and working. Hence this leads to another communication barrier between you and your vendor.
How you can counter this?
Before hiring, companies always check that they have a reliable connection to the internet. As it will solve all your problems. You can simply do a video call at an earlier decided time on which both parties are available and if it is urgent you can leave and email directing to the work you want to be done.
Impact on your organization
Your employees who are already there might feel ignored and replaced once you outsource work. This may also lead to negative sentiment in the company eventually affecting your organization.
How you can counter this?
You have to make your employees understand that outsourcing doesn’t mean that they’re less able to do the job. It is done so that the employees can focus their energy on working on the main part while the outsourced work can be done by other experts making your end product perfect and of the highest quality.
Hence this proves that outsourcing is the way in the global world. Though it has it’s disadvantages but not something you cannot find a way out of. The solutions to the cons are there and the advantages are far too much to resist.