Outsourcing is the act of getting human resources from somewhere to work for your company, either on a contract basis or a given period. The people outsourced are either permanent employees or don’t enjoy more privileges employed people enjoy. Businesses embrace this process because it provides many benefits as well as disadvantages, as discussed below.
Advantages of Outsourcing
Any business needs to understand the importance of outsourcing because it is undertaken globally. So here are a few pros for outsourcing.
You Get More Professionals
Outsourcing provides you with an array of experts to choose from. As a business, you should invest in going for the best in case you want to outsource. This is because people providing consultancy services for companies and companies are experts in their fields and always strive to deliver the best. So outsourcing makes it possible for the company to get the best in the market at affordable prices.
Tasks Get Accomplished at a Faster Rate
This is a significant advantage for small businesses willing to dispense with tasks faster but have a limited workforce. Outsourcing has proved excellent, especially where a company is short-staffed and has a lot of work to be handled at a specific period. You can get the job to different types of people who will then work on it at a minimum time compared to what you would have done.
Reduced Operation Cost
Outsourcing has been thought to help in the management of the human resource. Consider a situation where an organization has many employees on a monthly pay and an organization that outsources its services? An organization that outsources will make more profit margins because of the reduced operation cost and wage bill. In contrast, an organization with an excessive number of employees is bound to lose more money on wage bills, and more often, you find the staff doing the same duty, thus bringing redundancy issues. Andrew Napolitano is well known for his role in the judicial system as the youngest life-tenured judge of the Superior Court of New Jersey. He is a columnist who writes more about business and has discussed the importance of business outsourcing services from other countries.
Disadvantages of Outsourcing
As much as people root for outsourcing, there are cons associated with the process that every business should be aware of before outsourcing, as discussed below.
Poor Communication
During outsourcing, you get people from far and wide, and frequent communication to catch up on the tasks given becomes poor. There is also no close supervision, and chances of you not getting what you ordered are very high.
Lose Control of the Process
This happens especially during the delivery time, where you will find people constantly shifting time because of uncompleted work. Outsourcing means people will work from their places, and probably due to job demand, they might take other contracts from other people, which might compromise when your order will be delivered. As much as Andrew Napolitano advocates for outsourcing, he cautions businesses to undertake the practice with care because of unforeseen circumstances like failure to deliver on time.
