Barriers Preventing Customers from Using Outsourcing

25 May 2018

Nowadays, hard economic pressures and instability drastically influence business at all stages. These include lack of resources, time, necessary skills, reliable business partners and other important aspects. As a result, you have to organize your business better and consider the potential risks. To deal with some crucial issues, an effective solution for your company can be outsourcing.

Outsourcing means obtaining goods or services you need from an outside supplier. Many businesses outsource to serve their customers and perform both internal and external tasks. Small companies often outsource their important functions such as payroll processing, accounting, and distribution because they have no other choice. Large companies turn to outsourcing with the aim of cutting costs. In the realm of digital entertainment, for example, companies may feature offerings from a malaysia online casino, allowing them to provide a wide array of gaming options to their users without having to develop the games themselves. This strategy can provide businesses with a competitive edge in the market by expanding their service portfolio efficiently.

However, some business people are skeptical about outsourcing because they consider it “not quite the right approach.” This is one of the reasons some companies bypass this way of cooperation.

barriers preventing from outsourcing

What prevents people from using outsourcing?

The first problem with outsourcing a lot of the specialists talk about is the loss of data privacy. Today, the disclosure of confidential information is one of the main nightmares business owners have. They don’t want to show other employees/companies their important information resources. Thus, outsourcing is vetoed.

The second reason is the implied difficulty to create special agreements. When parties cooperate, they must sign special agreements. These documents clearly regulate the relationship, and the rights and obligations of both the customer and the outsourcer. Usually, the agreement content determines the scope of work and the cost of services. If the outsourcer does not meet these requirements, he loses the compensation prescribed in the contract.

The third problem is increased costs. In some cases, outsourcing leads to increased costs. Usually, this happens when the internal model is not balanced and has passed on outsourcing. The function continues to exist within the client’s company and the customer direct resources to duplicate its support. These situations are more likely the exception than the rule. In real situations, outsourcing is a way of reducing costs.When the outsourcing scheme is carefully thought out and both customer and outsourcer are good partners,  there is mutual benefit from their cooperation.

The last point is the language barrier. Sometimes, customers outsource to a country speaking a different language. In these situations, there may be dissatisfaction for customers dealing with the language barrier of someone speaking with a strong accent or having a huge time zone difference. It can be difficult to find mutual understanding with another team, and it can cause problems for both sides.

However, despite all sorts of caveats, it is necessary to understand the main advantage of IT outsourcing is the purchase of quality services from professionals. We can identify numerous persuasive advantages if you have some of these concerns doubt whether to use it or not.

What are the plus sides of outsourcing?

  • Quality level. For a company providing outsourcing services, this is its valued reputation. Therefore, it pays greater attention to all sides of a particular activity from special equipment and experience of the employees, to use of other specialists’ experiences.
  • Increased efficiency. The company doing everything independently has higher research, development, marketing, and other experiences. But, an outside provider cost structure and economy of scale can give your firm an important competitive advantage.
  • Quick start. A great outsourcing company has good resources to start a project right away. If the company hasn’t enough experienced specialists or major capital investments to start the development process, outsourcing helps realize it faster.
  • Focus on core business. Outsourcing allows companies to focus on their expertise and core business. The organization has more time to concentrate on strategic tasks, create a new development plan and plunge into new available projects.
  • Cost reduction. There can be significant cost savings when a business function is outsourced since companies do not need to invest in office space, training, salaries and other expenditures associated with providing a workspace or manufacturing setup.

To be or not to be, to outsource or not to outsource?

For every company, the best time to outsource is different. Some businesses have an in-house staff to handle daily activities but may need outside help to undertake new projects that don’t warrant another full-time employee. When you and your current employees understand you are unable to manage the day-to-day business of your company and build the business satisfactorily, it’s the right time to consider the use of outsourcing. It saves time and resources and directs your potential to develop your business with the help of new innovation and economic tools.