Outsourcing Statistics – Pros and Cons

Most people either believe that outsourcing is a power business move, or they believe that outsourcing is the worst thing that can happen to your organization. There are always two sides to a story, similarly there are a handful of pros of outsourcing and a few cons of outsourcing. In order, to take a calculated risk and make an informed decision, it is a must for you to know both the pros and cons. Continue reading to know how to make most use of the benefits and how to avoid the pitfalls of outsourcing.

2 Undeniable Pros of Outsourcing

Expert Help from Trained Professionals – One of the main pros of outsourcing that is very important is that you can get expert help from trained benefits by opting for experts from countries such as India. It is a fact that India has a strong private and a relatively strong government educational system, however; the jobs available in this country are not enough for the people living there, which is why by offering jobs with a reasonable compensation amount, you can get help from some of the best experts in this country.

IT and Taxation Benefits – Companies irrespective of being large or small enterprises, spend a relatively large seed amount and small follow up amounts while investing in a company that is located out of their home country. To ease the taxation problems and other IT tax burdens of these companies, certain countries such as India, offer taxation benefits and special SEZ areas that ensure companies get a relatively large taxation relief when they choose to give India and similar countries business.

Cons of Outsourcing
Inadequate Work Force and a Very Low Compensation – You get what you pay for, thus if you decide to hire a company or even a freelancer while giving him peanuts as a weekly paycheck then chances are that you will get work that is of comparable quality. Similarly hiring too few people for an operation process that is too vast and difficult will lead to overworked and exhausted employees which will affect the quality of the output. By giving a reasonable base salary, you can still save money especially if you are constantly motivating your outsourced employees through periodical incentives. Positive re-enforcement indeed works wonders especially if your workforce is adequate in strength.

Conclusion
Instead of choosing either to hire one or two freelancers from around the globe, hire a company from a developing country such as India, and make most of the pros of outsourcing. Avoid the cons of outsourcing by developing a comprehensive business plan and sticking to it. Hiring an outsourcing manager can easier your work load. Alternately hiring an established firm can reduce the stress of hiring inexperienced staff that delivers poor quality work.