The strength of any company or organization depends on the quality of its people. Managers may run the show but without enough and supportive manpower a business cannot be successful. Workers play an important role in any business venture. Without doubt, the growing popularity of outsourcing is due to the many benefits it offers to the business world, most especially in the field of human resources. Outsourcing is able to supply the vital need of companies for adequate and qualified manpower that supports a business. It can do this at lesser cost thus considerably contributing to the company’s profitability and growth. However, despite the benefits outsourcing gives, it does not necessarily make it a cure-all to all the maladies of business. It is wise to know the limitations of outsourcing. Otherwise, it may be blamed for “unsolved” issues the process is not designed to do.
Here are some things outsourcing cannot do:
- Outsourcing cannot solve all your problems. You must look at outsourcing for what it really is: a process that supplies qualified hands faster and at lower cost. However, before thinking of hiring the services of one, examine first the real reason for your problem. For example, the backlogs in your production may not be caused by lack of manpower but a glitch in the software interface of production process. It may be poorly designed thus causing slower production. In this case, outsourcing cannot solve this problem. It may even aggravate by just moving the problem from one area to another and spread problem to other departments or production phases. It is important to be aware of this because outsourcing may be blamed for something it was not designed to do thus erroneously smearing its reputation in business.
- Outsource companies may not do a better job than you. Perhaps, outsource companies specialize in certain areas of business and are supposed to deliver quality service. However, they are not as motivated as you are in running your own company. Face the fact that they are a separate company and also have their interest to safeguard with in terms of profitability. Although they commit themselves to offer you their best services, their obligation to you is limited to your contract with them (so and you must scrutinize each clause). Planning and implementing further steps for the improvement and growth of your company depend largely on your own initiative, not theirs. In this sense, you can (and should) do better than an outsourcing company.
- Outsourcing always saves you money. This is true only if you are able to negotiate the contract with them well. The perception that an outsourcing company can always do things cheaper than you may not always be the case. Being aware of this avoids frustrations, or even legal problems. This actually depends upon how well your company negotiate the contract with them. If the contract contains limitations or maximum levels, penalties may start to be imposed when these are breached and turns the contract into a nightmare of financial obligation for you. In most cases, this is not a case of the outsource companies trying to hoodwink their clients, but rather the clients’ disregard of usual legal precautions.
You can check this very informative inforgraphic about the outsourcing industry in the UK, click here.
This article is not meant to negate the benefits of outsourcing. On the contrary, it aims to protect it from harmful myths that surround it. It is important to know the truths in outsourcing to save both the outsource companies and their clients undue headaches and mistrusts that may arise between them due to misconceptions.