If you are in the business services providing operational field, you are probably well aware of the concept of outsourcing or offshoring. Nonetheless, you must also be up to date with the thick controversy which surrounds this practice. While the two sides defending the pros and cons of outsourcing may have good arguments, many feel that the Disadvantages of Outsourcing are far greater than the reasons to do so. The rationale why not outsource is linked to various ethical grounds, financial matters, pride and patriotism characteristics and even dedication to the happiness and content of the customers. The concept of outsourcing is translated into the practice of transferring a part of the services your company provides to other third-party external providers, in spite of the fact that this category of services could very well be taken care of by in-house workers.
First of all, the most patriotic preachers of the disadvantages of outsourcing are sure to stress out the disservices that this practice does to the local economy and local work force. A more aggressive slogan says that outsourcing steals the jobs of the local people, by giving salaries to foreign workers and, consequently, boosting their economy. In these times of recession and economic hardship, everyone is advised to invest in the local economies, manufactures and service providers, so the job stealing argument can be a pretty strong reason to want to keep your company based on local grounds.
Secondly, the quality of the outsourced services provided to the customers is yet another reason Why not outsource. In order to save money, companies outsource to poorer countries which require less money to pay the wages for their citizens due to the lower average income registered there. However, unsurprisingly, the companies receive what they pay for most of the times. With low salaries also come the lack of a superior higher education, the lack of much needed skills and, what is perhaps most important, the lack of an intelligible accent, which does not confuse or irritate the customers. Also added to the list of disadvantages of outsourcing is the long time it may take the foreign worker to respond or resolve the problem the company or the clients have asked to be taken care of. This is an especially appalling aspect especially when it comes to IT companies.
Last, but not least, many companies which outsource are bound to lose numerous precious customers. This is because the hatred against outsourcing is so deep that some people choose to boycott this practice. Perhaps the greatest of the disadvantages of outsourcing is that the money you save will be lost in the business opportunities you miss due to the strong feelings against it.
Although there are many disadvantages of outsourcing, no-one can say they have found the complete set of reasons why not outsource which is sure to satisfy each and every single person. However, you should pay a great deal of attention to the reasons why not outsource and figure out if they are worth it.