Boons and Banes of Outsourcing with Statistical Insights

Outsourcing technology based on offshore business partners in Asia, Europe and largely in USA. For most organizations, IT is becoming one of the overpriced departments, depleting revenue, and human resources. In order to reduce expenses and optimize business productivity, IT has to take the foreseeable significant leaps in outsourcing. For the geographic map of employment of US was getting imbalanced and the costliest IT labor turned US enterprisers to thrive for emergent talent in Asia, and Europe. Despite of outsourcing’s economic advantages, it was seen with sore eyes in past but to curtail unemployment anxiety and high labor costs in US, the major firms like Amazon, Apple and Google are planning to open their centers at off-West shores. Despite of Cybersecurity, block chain, cryptocurrency, the demand for outsourced tech talent is accelerating on digital landscape.

Boons and Banes of Outsourcing with Statistical Insights

Outsourcing is the progressive landscape other than IT business as it is successfully providing social, medical, financial, administrative, and freelanced workforce of multiple fields globally.

Pros of Outsourcing

The enterprises like Alibaba, Google, Skype, WhatsApp and various others have recognized the benefits of outsourcing.  As IT-BPO Industry in the Philippines increasingly recording economic boom since 2012 due its innovative labor, and consistent progress of outsourcing business.

 Advantages of Outsourcing

1.      Increased Business Efficiency:

With reduced costs, easy access to superior services, and improved communication technology, many small and large enterprises jumped into digital landscape of outsourcing. These facilities has made this digital journey more efficient due to enhanced focus on core business goals.

2.     Access to Expertise and the Variety of Services:

Outsourcing job is accomplished when the hired crew has skills other than the professional expertise, such as the effective communication skills, English proficiency, the agility in performing of the technical tasks, time management expertise, team building and collaboration.

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3.     Swiftness in Delivery:

Due to availability of expert crew, delivery of products, services and the execution of projects can be done quickly and conveniently. Due to different time zones and different public holidays’ schedule, the work still continues and enables outsourcing companies remain opened 24/7 hours.

4.     Productive and Innovative:

In this fast era innovations are the best attractions, and the flexible remote job opportunities provided to the crew, enhances the productivity and innovative skills of the labor.

5.     Reduced Operational and Recruitment costs:

Though the outsourced labor is hired through meticulous interview process, and it involves less cost due to online interviews and evolutionary tests.

6.     Small Crew:

The beneficial crux of outsourcing is that little amount of employees can cut the chops. Even the contract based employees can execute big projects.

7.      Cost Friendly:

One of the core hunt of outsourcing is to curtail heavy labor costs with uncompromised labor quality. The specialized labor and the global talent is being searched worldwide and the Third World countries are the greater hubs for cheaper and quality labor

8.     Easy Management:

The small crew is easy to manage in financial terms, create less communication issues, and less time consuming leadership guidance is provided to employees for the execution of projects.

Cons of Outsourcing

The cons of outsourcing are the reasons which involves risks, failures, technical frauds, inflow of cash, and online business scamming. The political involvements and law enforcements can become the major hurdles in outsourcing business.

1.     High competition:

Outsourcing is the smart game with bombastic results, requires clear strategic spectrum, technologically keen leadership, and the skill to focus on high value cases. It’s vital to have both resources and expertise to fulfill quickly the clients’ demands. To fulfill this criteria, the enterpriser has to be smart, innovative, and expert. If he lacks, the other outsourcing sharks in market can sink his boat.

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2.     Domestic Unemployment:

Unfortunately, the outsourcing negatively impacts on domestic country’s economy due to cash inflow from the companies working on outsourcing.

3.     Problems with Quality:

The Outsourcing can take turn of technical scam and fraudulent transaction due to misinformation and the supply of uncompromised quality products and services which were promised to be standardized.

4.     Lack of Control:

Since the crew is not working on on-sight, it can be difficult to control for various reasons such as communications failures, language barriers, lack of focus, and unmotivated environment.

5.     Communication Issues:

Communication issue can lead towards major failures. There can be various reasons pertaining to communication gap, since outsourcing is not face to face organization where various restrictions can be implemented on crew to keep them at right direction and make them more productive. The verbal advising can remain ineffective on the employees. Fluctuating internet quality, and electrical issues can enhance communication issues.

6.     Lack of Focus on Client:

It can become a complicated game when the remote enterprise fails to focus on its customers’ demands. Things get tricky, messy, cold and awkward due to communication issues, or due to failures in delivery due to strikes, political chaos, or weather conditions.

In the customer-driven world; the business dealings can take an irritating turn if the defects and problems raised by clients are not addressed on time. .

7.     Impact on Company Culture:

It is easy for the remote workers to get unmotivated or distracted. To keep your chosen talent on the track, use your boosting leadership skills to put them back on the competitive road. Act before they slow down the work’s pace or spoil the working environment through various entrepreneurial methodologies. Motivation is the strategic drug which can save your boat and would sail you towards the promotion of remote team culture.

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8.     Risk of exposing confidential data:

In amid of globalized and technologically revolutionized era, where the tons of data is transformed on internet on daily basis. It is disruptive to maintain privacy.