To Outsource or Not to Outsource

8 Factors to consider for outsourcing decisions. 

During a downturn in the economy when the demands for products and services touch the lowest level and cost is skyrocketing, outsourcing acts like a savior. Majority of the companies look for cost-effective solutions to run business operations with effectiveness and maximize the performance of an organization during a period of recession.

Costs of labor can take a toll on the profits of a business. In this kind of times where outsourcing to increase your productivity is a definitive choice while at the same time-saving substantial cost.

Looking for an outsourcing partner might possibly be an uncomfortable decision at first, but when you start doing it you get a grasp on the procedures and approaches that can make your business run in a seamless manner, and on top of that ideas from experienced outsourcing companies will provide you out of the box ideas making your business more modern with technology and efficient. One example of this is establishing a positive relationship with your clients, customers, or target audience will require strategic skills that can be provided and made effective with the assistance of a genuine outsourcing services provider. When you outsource services to a company that is located offshore, the target is to access a better workforce that can handle your tasks with a different approach and is identified as a turning point in business. There are some businesses that try to do everything on their own without realizing that it is a counter-productive step. Both big and small companies resort to outsourcing their business functions. It’s either outsourcing most of their function or just a couple of tasks so they can focus more on other things that truly matter at the core of business aspects. Here are some factors to consider for taking outsourcing decisions for your business:

Cost Savings

You don’t need to be an expert in analyzing to figure out where you’re heading. All you need to know is whether outsourcing will help you reduce a significant amount of your capital in hiring employees and getting equipment while at the same time maintaining the balance between the quality and quantity of the services provided by the outsourced employees. The bottom line is outsourcing needs to improve your business and if you don’t see things happening soon, chances are that you’ll end up spending more than you end up saving.

Resources and Technology

Technology and resources are two considerations that are essential when you choose to outsource. Outsourcing your services to a vendor/company that has up-to-date systems can seamlessly handle your business functions.

Ability to meet Deadlines

Timeliness is probably as important as costs in terms of outsourcing. If the company that you hired to outsource your functions fails to toe the deadlines, it can lead to major bottlenecks. That alone will nullify any cost-saving benefits that you had anticipated while hiring them.

Minimal Supervision

Choosing a responsible vendor who will oversee the projects is a must-have so that you only need to supervise them minimally and let them take it from there. This will give you more time to focus on your core business functionalities.

Limit Liabilities

More often than not, there are certain functional areas that can build up liabilities for a business. This eats up time and money, which can be spent elsewhere. You can cleverly outsource certain functions to reduce the liabilities to an extent.


Confirmations that the service provider is a valid and trustworthy company is very important, you can do it by researching online, having a reference who’s worked with that vendor in the past or still working with that vendor will also be useful, also getting proof of certifications and accreditations is an important thing. Who’ll lead the team Blind faith in outsourcing a team can be avoided by trying to know which or who’s going to be working on your project and of course who’ll lead them. Learning these facts upfront will save you from several agonies at a later stage. Some businesses approach this by having their leads onshore or internally while managing those who are being outsourced.


Communication is key whether you’re working onshore or with an offshore team. The vendors should be able to handle your queries and promptly reply without making you wait indefinitely. Their communication skills need to be spot on without any space for cultural or other communication barriers. This ensures that they have clearly understood your requirements and can address any issue that may come forward.

The Bottomline

Almost all businesses today are looking for ways to cut their operating costs and increase their efficiency. For many, this means outsourcing their tasks to other companies. With the rise of certain new technologies, outsourcing has become a trend now. But before you take any decision, first ask these 8 questions to decide whether to outsource or not.

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