What to consider before outsourcing functions

Even though there are many reasons to consider outsourcing, there are also some negative aspects that need to be considered.

Employee reactions: No one likes to think his or her job may be in jeopardy.

Once your employees see that jobs are being outsourced, they may think their jobs are next.

This can cause some employees to leave the company in search of one that isn’t outsourcing tasks.

It can also cause general uneasiness, which can lead to lower morale and less productivity.

Loss of control: Once you let someone else handle part of your business, you begin to lose control.

Customers may not be handled the way you prefer and management may make decisions you don’t approve of.

If total control is important to you or your business, reconsider outsourcing.

Customers: You may lose some of your customers once you start outsourcing.

Some customers may feel disconnected knowing you no longer perform this function yourself.

Issues of trust arise and the outsourced company may not adapt to the firms changing needs.

Mr Mwalya is an Accountant at Tribe Hotel, Gigiri.