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The Pros and Cons of Outsourcing
Outsourcing is a trendy topic amongst news articles, blogs, and social media networking sites, in recent times. During a recent discussion on LinkedIn, the question was posed as to whether or not outsourcing was good for the US. As you might expect, opinions ranged from totally disagreeing with outsourcing to recognizing outsourcing as a tool that American businesses needed to use in order to stay competitive. There are, however, many pros and cons to outsourcing, especially when it comes to off-shoring -- the practice of outsourcing projects to a foreign country due to cost.The number one reason for outsourcing today is to INCREASE PROFIT. Outsourcing allows companies to pay cheaper labor wages because of the lower cost of living in those areas. With lower spending on training, marketing, and/or development, companies can focus on their core business, cut operating costs and increase their productivity.
A number of individuals and companies outsourcing for the first time, who are focused on sharply reduced cost of delivery, simply do not have appropriate processes in place to validate whether the company outsourced to can actually deliver throughput with the levels of quality required within the time line required. Hence, some unpleasant shocks in quality, time, and cost overruns result -- thus negating the value of outsourcing. Individuals and companies who have reasonable " skill / throughput" validation processes in place succeed in reducing costs while keeping quality in place.
Many Americans fear outsourcing, and this fear has created a lot of negative associations or myths about outsourcing. There are many stories that cite poor quality, bad service and security issues when companies choose to outsource. The reality is that organizations seeking to outsource must do their due diligence before awarding the contract. The right firm should provide open and honest communication, offer examples of their work, offer references, sign NDAs, and provide you with a fully documented schedule as a matter of course. Anything shy of this level of effort should be met with suspicion.
Outsourcing is all about working with the right company. Here are some questions you should consider when choosing a company:
- Does the company have a local office?
- What do past clients have to say about their services?
- Does the company have an experienced, well organized team working offshore?
- Is the latest technology being used to ensure efficiency?
- Does the price correlate with professionalism, quality of work and customer support?
True North Services -- The RIGHT Direction.
Adapted from an Article by Monica Alexander.
About the Author: Monica Alexander, Marketing Intern at Digital Sabre Solutions. Digital Sabre Solutions, LLC (DSS) provides reliable, quality customized software application development.
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