For a Business: What Are the Pros and Cons of Outsourcing?

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Have you been thinking of the idea of outsourcing some functions of your business? But also, you wanted to know more about it?

The outsourcing industry is expected to see more growth across many functions, including IT, Finance, and HR. So why not learn more about it, before goi

Pros

Cheaper, and Lowers Labor Cost

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Ask any business why they choose to outsource, and the reason is that it is cheaper to do so. 

You also lower the cost of labor because of less overhead costs. These are the additional costs of hiring an employee. However, you’re not the one doing the hiring and recruiting, plus you don’t have to pay for added spaces you would when you hire in-house employees.    

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Facilitates Quick Growth of a Business 

Outsourcing also brings in the agility of growing a business due to the technology and expertise it brings to them. 

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Large Talent Pool

When you outsource, you are exposed to a large pool of skills and expertise worldwide. Whereas when you hire in-house employees, you are limiting yourself to the talents around you, which is not really a bad thing. However, it depends on what your company needs because sometimes, the immediate talent around you is not enough for that. 

Cons: 

Cybersecurity Risks

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When you outsource, you’re also trusting your service provider to protect your business’ information and data from malicious intents. However, not everything’s perfect, and since you’re sharing your data, there might be a chance of data breaches. That is why you should ensure your service provider has a reliable cybersecurity policy to protect your data. 

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Getting Subpar Service

There might be a chance that the quality of work you get is not at par with what you expected. 

Don’t compromise quality with cheaper offers. There are a lot of outsourcing companies out there. 

Do your research and compare companies, their prices, and the qualities of their past projects.

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Accent Variation

This is a problem you’d most probably get when you employ outsourcing companies offshore. If you think it can be a huge problem for your company, you can employ an onshore company to ensure you won’t have problems with customers getting irate with an employee’s accent. However, another thing you can do is check past projects, reviews, and examples of a company’s employees’ work.