What do you think of when you hear the word outsourcing? Do your thoughts turn to the risks of outsourcing, such as:

• Offshore workers
• Poor customer service
• Security issues
• Job security concerns from in-house employees

Or perhaps your first thoughts about outsourcing are regarding the advantages of outsourcing:

• Reduced business cost
• Time savings
• Expanded services for your clients
• Increased competition with larger corporations
• Ability to grow your business rapidly

Reasons to Outsource

All of the points listed above can be true about outsourcing, and whether your experience is a positive or negative depends on what services you are seeking to outsource, and the outsourcing company you ultimately choose.

Before you outsource you need to understand your reasons for considering outsourcing. So let’s breakdown the pros of outsourcing, that I have listed above.

• Reduced Business Cost Outsource personnel are considered contract labor and you do not need to pay taxes on them, nor provide them with health insurance or other benefits as you would an in-house employee.
• Time Savings One person cannot possibly do all things, and do them well. By hiring an outsourcing company, you are saving yourself time, as you are not having to do all tasks yourself. Outsourcing services also allows you to focus on what you do best: manage your business.
• Expanded Services for Your Clients There is literally nothing you cannot outsource. If you want to offer a new service for your clients, find an outsourcer with that skill – thus increasing your profit potential and market reach. Outsourcing allows you to provide a variety of skill sets to your clients.
• Increased Competition with Larger Corporations If you are a small business owner, hiring in-house staff in an attempt to compete with large corporations is likely impossible, or not cost effective for you. Outsourcing allows you to essentially increase the overall capabilities of your company to effectively compete with your toughest competition: the large companies and corporations.
• Ability to Grow Your Business Rapidly Outsourcing allows you to find others with the skills and abilities you need to make your business growth possible. Nearly any concept you have to expand your business can be done quickly using outsourced skilled workers.

Reasons Not to Outsource

Now let me address some of the common disadvantages to outsourcing, and some workable solutions to overcome these concerns.

• Offshore Workers Without a doubt, most people assume that all outsourcing is done outside of the United States to offshore outsourcers, and the assumption is that any American-based outsourcing company is too expensive. The truth is that there is an affordable, competitively priced American based outsourcing company.
• Poor Customer Service If you have ever attempted to contact a company, only to be directed to an offshore call center where you were treated rudely, or when you could not understand the person answering the phone due to poor English: you’re not alone.  The truth is that many offshore workers are either poorly trained, have poor English speaking ability, or do not have your company’s best interest at heart. The end result, regardless of the reason, is poor customer service which will cost your business dearly when you lose business due to unhappy customers. A well trained American based outsource company will provide you with excellent customer service.
• Security Issues Providing Giving any one person all the minute details of your business processes is not wise. Doing so is a definite security risk; however, outsourcing only select areas or tasks of your business helps eliminate that risk. Also having a NDA (non disclosure agreements) with your outsource workers adds another layer of security protection for your private information. [Your Web Tech Team does have NDAs with our clients and our staff]
• Job Security Concerns for In-house Employees To avoid these concerns, outsource only tasks or skills not found within your current in-house employees. Outsourcing skills that are already available to you is not a wise use of outsourcing. Use outsourcing workers to expand your skills levels beyond what you currently have available. This keeps everyone happy.

Outsource for small business is a huge industry, and if approached with careful thought and planning can truly be a benefit to your company. An American based outsourcing company may very well the answer to your outsourcing needs.  Your Web Tech Team is that company!

To Your Success,

Traci Knoppe, Owner

P.S. Do you currently outsource any of your business tasks?

Edited to add a link to Luxoft’s predictions for the outsourcing industry in 2010.

Global Outsourcing Leader, Luxoft, Announces 2010 Industry … – Luxoft, a leading global provider of advanced application and product development services, today has issued its predictions for the outsourcing industry in the coming year. The current state of the economy has hit hard many industries …