What to consider before outsourcing functions

However, projects that end with no ongoing need of the staff would best be outsourced

Management: If the management needs to strictly control the process, they should not outsource.

An example of an outsourcing activity which may not have been a good idea was customer support for computer equipment sales by Dell a while ago.

Dell could not control the interaction with their customers and there were numerous complaints about communication skills, product knowledge and general attitude of the outsourced technician. Outsourcing has many advantages but at the same time it has some disadvantages that cannot be ignored.

Specific tasks

Cheap labour: The organisation is able to access cheap and efficient labour through outsourcing.

This is brought about by reduced training costs.

Outsourcing helps the organisation save money, but this depends on the specific tasks being outsourced.

Reduced costs: Outsourcing helps companies cut operating costs by almost half.

It also helps the organisation provide high quality products at a cheaper rate.

The savings can be enormous depending on the nature of business operations.

Access to technology: The outsourced firm can afford the latest technology since it could be part of their core business.

With outsourcing you don’t need to become an expert in a particular area because you can depend on the outsourced company.

Increased production: The outsourced company can provide service 24 hours a day, with workers around the globe operating in the best shifts available.

This way the company will focus on its core business and outsource “non-competitive” factors to business partners.