By: Ynet Admin Posted on: 2014-04-21
With improvements in worldwide communications technology, distance no longer causes a problem in the world of business, so what are the advantages and disadvantages of sending some of your work to offshore outsourcers? Many large companies use the services of offshore outsourcing, particularly the large utility companies, telephone companies and even banks, with queries and technical support calls being directed to call centre operators thousands of miles away, thereby freeing up valuable resources in-house and allowing businesses to concentrate on the core functions.
Cost - Lower costs of labour and operations can be favourable; outsourcing can prove to be financially viable and reduce a company's overheads, with less necessity for technology investment and staffing needed to run back-end processes.
Flexibility - With the outsource provider being responsible for managing its workforce, businesses are freed up from manpower and staffing management, allowing them to select the best people to run the necessary in-house functions.
Efficiency - Businesses can gain a competitive advantage with the increased productivity and efficiency of having non-core functions of their business outsourced.
Focus - Having the functions which tie up key staff with mundane tasks outsourced, means that businesses can commit more time to the essentials and focus on driving the business.
Confidentiality - There can be a risk of loss of confidentiality and data associated with outsourcing. Businesses need to implement measures to avoid this happening.
Loss of Control - Problems may occur if businesses lose control of the management of their business functions. Terms and conditions need to be clearly defined to an outsourcing provider from the start.
Poor Quality of Service - Outsource providers may work with several businesses and therefore, may not give full commitment to a single company; this could result in inaccuracies and delays and also, businesses need to understand the culture of the outsource provider to avoid poor communication and occasional language barriers.
The pros and cons of offshore outsourcing, should be scrutinised by any business prior to seeking and employing the services of an outsource provider, many of the pitfalls can be overcome by careful choice of the company you want to work with. The availability of educated staff oversees is vast, with outsourcing jobs attracting candidates due to the higher wages they receive in comparison to other types of employment in their own country. The main reason for any business to opt for offshore outsourcing is always the cost effectiveness of doing so; a small business could effectively outsource a whole department, eliminating the need for huge staffing costs. The benefits of outsourcing can far outweigh the pitfalls, allowing businesses to reduce costs, streamline their business processes and concentrate on the more vital functions of their business. Providing your outsource provider with full, clear and explicit instructions from the start will help to ensure that your business outsourcing will run smoothly and efficiently.
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