What are the basic advantages of outsourcing?

Let’s name just a few of them. Outsourcing business processes will save you a lot of money. Hire staff from India or the Philippines — and your expenditures will be tied to the average salaries in those countries. Furthermore, both states have lower taxes and are cheaper to operate. Increased professionality. If you outsource some definite specific tasks to narrow specialists, you will get more qualified work done. A deeper focus on revenue. Delegate all the second-rate duties to outsourced specialists and pay more attention to vital business issues. Pay less. Outsourcing lets you significantly reduce operational and hiring expenses.

What are the basic disadvantages of outsourcing?

1. Risk of information leak. Probably, the biggest fear of all the entrepreneurs who outsource their processes is the fear of losing sensitive data. To protect yourself against such cases, sign confidentiality contracts and NDAs and take all the possible foolproof measures. 2. Slow service delivery. In-house specialists will deliver new results asap — and you can’t guarantee this with the outsourced ones. 3. Instability risks. If the company you’ve chosen for outsourcing blows apart, you will be left without needed hands. 4. Focus loss. Some companies are real professionals in outsourcing, but this stardom has its own downsides. If the said company gives its specialists to several businesses, it can result in underperformance.

Why HR should not be outsourced?

Outsourcing HR services creates unnecessary distance between these specialists and your employees. If HRs aren’t instantly available, employees can often feel abandoned by their corporation — resulting in low morale and efficiency decline.

Why is IT better to outsource?

IT outsourcing ramps efficiency, lessens operational costs and makes it easier for companies to focus on core competencies and growth.

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Outstaffing vs. Outsourcing: How to Choose

What do startups do if they can’t get in-house specialists? Mostly, they resort to outsourcing or outstaffing. What’s the difference, and how does it work?

Oleksandr Stukalo

Apr 19 5 min read