November 17, 2011
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What’s one of the dirtiest words in business? Chances are that the word ‘outsourcing’ comes to mind. Some despise it, many business owners shy away from it and countless entrepreneurs depend on it. Regardless of what side you take, it is important to know that outsourcing exists and it’s here to stay. Why? Because there are a lot of things to love about contracting various business functions to someone else.
As a tech entrepreneur in a hyper-competitive market, I have used outsourcing to accomplish a variety of tasks. Whether it is data entry, design, research or basic programming, there is a market of specialized recruits available to you.
Leveraging the talents of others who may live beyond our borders provides a number of advantages. On the other hand, there are drawbacks that accompany outsourcing.
Here are eight pros and cons to consider before you decide to outsource your next project.
The Pros of Outsourcing
1. Reduced Costs
The single-most influential factor behind outsourcing is the reduced costs of using foreign labor. Often cheaper than using domestic talent, outsourcing allows entrepreneurs and project managers to utilize contracted employees as opposed to part-time or full-time employees.
2. Time Zone Factor & Holiday Schedule
Imagine that your team is working while you are sleeping. Based on the geographical location where a majority of outsourcing occurs, it’s likely that your outsourced colleague will be on the opposite side of the world. While your office is closed, your company can still be open.
Support staff, data entry and web development can all be accomplished through outsourcing. Also a significant portion of your outsourced staff may not recognize American holidays, therefore, your company doesn’t have to close its doors on 4th of July, Christmas, Easter and other national holidays.
3. Easy to Post and Manage Projects
When you use a service like VWorker, Odesk, Freelancer, or any other similar service, it organizes and streamlines the management of outsourced staff. It is easy to post a project and fill a position in a timely manner. The management process of deliverables, project cancellations and payments schedules can be effortless with these web-based tools.
4. Distant Relationship = Easier to Fire or Replace
Face it, when you work with people, things don’t always go as planned. Having a contractual relationship in place provides the employer a much easier platform in which to replace or fire an employee without the traditional human resource issues. With outsourcing, personal feelings don’t get in the way because that bond is less developed and guided by a contractual scope of work.
In contrast, while you seek to build strong relationships with your team members, it is important to be able to release those who are not performing, on the fly.
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