Outsourcing Risks and Rewards

Protected by Copyscape Unique Content Check
Published: 03rd April 2015
Views: N/A

The Risks
Whenever you give some other person the responsibility for a part of your business there will always be a risk involved. Business proprietors who are thinking of outsourcing need to be conscious of the following perils:
1. Control might be lost: Critics reason that an external vendor will certainly not be as efficient as a full-time employee who is working under the same management as other staff. Other apprehensions include disaster recovery and confidentiality of data.
2. Some IT functions cannot be easily outsourced: IT has an effect on the whole organization; from simple duties employees do every day to complex tasks. Make sure the outsourcing company are proficient to execute your greatest requirements.
3. Employee morale might be affected: This is especially true if you’ll be sacking employees to substitute their jobs with an outsourced company. This will make the other employees doubt whether their jobs is at risk as well.
4. You might get “locked in”: If the outsourcing company doesn’t document their work on your system and network, or you have had to buy their registered software, you might feel like you cannot go anywhere else or withdraw your network. Many outsourced firms need you to sign a contract year to year which will limit flexibility.
Majority of these risks can be avoided completely if you know what to look for in an outsourcing company and ask appropriate questions.
The Rewards
Are you still not certain whether you should outsource or not? There are numerous rewards you can anticipate when you outsource your company’s functions:
1. Get access to the greatest and newest in technology: Hardware and Software becomes obsolete rapidly in the IT industry. And it is not feasible for one staff member to keep up-to-date with all the things. Outsourcing will help you to have more than one professional.
2. Saving costs: Outsourcing some of IT services offers financial advantages such as bulk buying, lesser overheads, leasing opportunities for software and hardware and software licenses and also probable conformity with government rules.
3. High quality staff: Because it is their core expertise, outsourced companies look to recruit staff with certain certifications and qualifications. You might not understand what to seek if you are recruiting someone on a full-time basis, therefore you might recruit the wrong person for the work.
4. Flexibility: Vendors have numerous resources accessible to them, whereas internal staff might have limited capabilities and resources.
5. Stress reduction and job security for regular employees: Utilizing services of an outsourcing companies eliminates the burden from your employees who have taken on more tasks they were recruited. By outsourcing, you will set up a better rapport with your employees when you allow them to do what they are proficient at and what they were recruited to do.

Now that we have comprehended the risks and rewards of outsourcing functions of your business, still there is a lot to contemplate over. Whether you opt to hire internally or outsource, one thing is sure, you must be acquainted with how to handle successful working relationships with your outsourcing company. The following tips will help you to establish a smooth working relationship with the outsourcing company:

• Clearly develop and communicate the objectives and goals of your business relationship or project with the outsourcing company.
• Have a tactical plan and vision for your relationship or project.
• Choose the right outsourcing company or hire through references and research.
• Persist on a plan or contract that includes what you expect from the relationship, particularly the financial facet.
• Have open communication with all the individuals who are involved.
• Gather support and participation from decision makers who are involved.
Outsourcing companies provide services such as photo restoration, data processing services, microfiche scanning services etc. that can help an organization to focus on their core areas. So, outsourcing is definitely a winning proposition!

This article is copyright

Report this article Ask About This Article

More to Explore