Outsourcing brings in a lot of flexibility but it also has its pitfalls. Any small business looking to outsource must keep in mind the pros and cons of outsourcing before deciding to take the plunge. 

Take a look at this list of advantages and disadvantages of outsourcing that I’ve compiled to see if it’s something that can work for you or not!

Advantages of Offshore Outsourcing

  • Activities that matter to your business take center stage. Outsourcing non-core activities such as administrative and data entry tasks help you put the focus back on the core parts of the business, such as sales and marketing.

  • One of the biggest advantages of outsourcing can be the cost savings. The competitive cost of labor can make it an attractive option if you are on a tight budget.

  • By increasing productivity and efficiency, your business can be more successful and better prepared for market challenges.

  • Outsourcing gives your business more flexibility in staffing and manpower management. Not only will you save on costs but you can also pick the best people to run your core functions.

  • Outsourcing also allows your business to develop new competencies and skillsets which you can then use for your competitive advantage.

Disadvantages of Offshore Outsourcing

  • One of the biggest disadvantages of outsourcing is the risk of losing sensitive data and the loss of confidentiality. It’s important, therefore, to have checks in place to avoid this.

  • Your no longer able to control every aspect of the activities that you outsource.
  • Problems with quality can arise if there isn’t any proper process in place.

  • Outsourcing may result in delays and inaccuracies in the work output if there is a lacking training or communication.

  • Hidden costs may arise if the outsourcing terms and conditions are not clearly defined.

  • Not understanding each other’s working process can lead to poor communication and lower productivity.

Though outsourcing has its share of advantages and disadvantages, the many benefits that outsourcing brings far outweigh its disadvantages.

Many of the pitfalls of outsourcing can be avoided by choosing the right company or person to work with!

Before taking the decision to outsource, it‘s important that you align the goals of your business with your objectives for outsourcing to see if there’s a good fit.

If you want to know more about other solopreneurs’ experience on outsourcing, feel free to join our Facebook group.

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