Yet another debatable topic with two or more sides to a story has waltzed its way into our blog; what are the factors to be considered when a company chooses to outsource their projects?
To create a lighter atmosphere, let us begin with the pros associated with this strategy. Whether it is a SME business, or massive MNC, cost is always a major factor. And it is believed that outsourcing helps reduce cost in both monetary and productivity wise. Vendors who specialise in a certain field will be able to side step the usual pitfalls inherent of the project at hand, hence allowing the end goal to be reached sooner.
Aside from cost, outsourcing also allows the respective company to utilise their resources on more core projects. This frees up company resources such as internal manpower, to concentrate on matters that really matter, improving productivity and reducing the stress level otherwise associated with the project. What’s more, should the company choose to produce internally or do a project in-house, specialised training needs to be conducted for the relevant employees. Unless the project will be done on a long-term basis, chances are such training will be more (churn more) expenses than cost (return).
So what then are the cons of outsourcing? Those easily identified include security, lack of control and impact on employees’ mindsets. What if the outsourced company divulges the information to another competitor? Doesn’t an outsourced project mean that employees are dispensable? With lesser control on the project, will it still turn out according to requirements?
If there are so many cons associated with outsourcing, then why are so many companies still doing it? Perhaps someone can put an end to this string of questions regarding the perils of outsourcing.
Source:http://demondeventure.wordpress.com/2010/10/28/outsourcing-%E2%80%93-asset-or-liability/
