Moving some of your organization’s functions to an outside service provider(s) is a business strategy commonly in practice today. Organizations now outsource IT Solutions for convenience. Should you only focus on the “convenience” factor here? Yes, outsourcing IT Solutions to an external service provider comes with many benefits. Anyway, nothing in this world is perfect. I mean, we should also focus on the downside of outsourcing in detail here. So, if you are a business owner who plans to outsource; you will benefit from reading this article. Let’s get started!
Why do organizations outsource IT Solutions?
Well, our blog has a few articles on why should you outsource. Reducing operational costs is the main reason for outsourcing. Yes, it can save your time and money in the long run. In a world where business owners and Organizations work hard on reducing operational costs, anybody can save money through outsourcing. Today, organizations outsource the entire function or just a part of it to an outside service provider. An outside service provider may have additional expertise than your in-house team. In other words, they are better than your in-house team.
When an organization come across a situation that involves a lack of staff; outsourcing may be the best option to bridge the gap in staffing. For example, lack of staff in the IT Solutions department. No business can survive without a reliable IT Solutions partner today (it could even be a qualified in-house team.) Anything can be outsourced today. Reputable service providers are available in every country who provide service for several areas within an organization. What are the other areas of your organization that you can outsource? Below is a list:
* Call center.
* Accounting Services.
* Human Resources.
* Cleaning Services.
* Payroll Services.
* Marketing Services.
* Facility Management.
* IT Solutions.
* Order Fulfillment.
Why should you outsource? Well, I will explain to you the advantages of it.
1) Reduced Costs
As mentioned, reducing operational costs is the main aim of outsourcing services to outside vendors. Service providers who are specialized in providing a “specific” service will save your money in the long run. For example, IT Solutions. Employing IT experts is expensive today. Outsourcing lets you operate your organization in a small office. So, you can save money on the rent. Affording the cost of office premises rent is a nightmare today.
2) Focus on your core business
IT Solutions may not be your expertise. So, focusing on IT is an additional pressure to you. Yes, when you have to focus on something that you are not familiarized with; you can get stress over it. As a result, you would lose focus on your core business, which is the most important of all. You can’t rely on your in-house team as they already have several tasks to complete.
Hiring vendors that are experts in services means improved quality. They know how to do it better than your in-house team. And, that is why many organizations now outsource IT Solutions to outside IT companies. They have necessary equipment and resources to provide you a quality service. As a result, the quality of services that you provide will satisfy you as a business owner. “Quality” is the factor which will keep you running in the industry today.
4) Customer Satisfaction
Focus on your core business, improved quality, and reduced costs will ultimately let you satisfy your customers by providing an efficient service. More satisfied customers mean your success as a business owner.
5) Increased efficiency
Hiring specialized vendors will increase the output of your business. An expert IT Solutions provider can take your business to the next level with their expertise. You can get all the critical tasks within your organization done efficiently by specialized vendors.
OK, we were talking about the positive side of outsourcing. What are the disadvantages of outsourcing then? After reading this section, you will consider your in-house team as the safest and the best option.
1) Quality risk
While you can supervise your in-house team for quality, can you do the same for an outside vendor? Some organizations outsource IT Solutions to vendors in overseas countries such as in India and Philippines. But, some service providers in these countries only focus on saving money. Just go to Upwork, the world’s number one freelance website. Hundreds of organization post jobs on the website and some organizations say, “no freelancers and companies from India, Bangladesh, and the Philippines.” Which means freelancers and IT Solutions providers in these countries may not be the best option for you (they have a bad history in terms of previous customer reviews.)
2) Language Barriers
You may want to think twice about outsourcing your call center to a country that does speak English. Also, you may face the same issue when outsourcing IT Solutions to a country that doesn’t speak English.
3) Lack of coordination
Your in-house team and the outside IT Solutions provider — will they coordinate with each other well? As a business owner, you may want to consider this factor when planning to outsource. Explain to your employees about the importance of outsourcing, so you can get them to coordinate with the outside service provider well for the success of the organization.
The outside IT Solutions provider in a foreign country — can you trust them like the vendors in your city/country? You may want to think twice about giving your sensitive data to an outside vendor (especially, in a foreign country.)
What should you do then? Well, you can outsource after careful research about the outside vendor. For example, you can outsource IT Solutions to a reputable service provider in your country, instead of a one in a foreign country. Well, don’t get me wrong here. I am not against countries such as India and Philippines, but why many job providers at Upwork refuse service providers and freelancers from these countries? Well, I did my research about it. It was the poor quality of services they provide.
Some final words
Yes, you should outsource IT Solutions to an outside vendor. You can save your time and money by doing it. Anyway, avoid outsourcing to vendors who have a “bad” reputation. Train your in-house team to coordinate with the outside service provider. The language barrier is a thing to consider when outsourcing your call service.
Previous customer reviews are your saviors here. Don’t hire outside vendors whose ratings are below “4 stars.” Also, don’t only focus on the price when considering outside service providers for outsourcing. A wrong decision can lead to a disaster in the business world.