Wednesday, August 27, 2008

What Are The Disadvantages of Outsourcing, Part 2

By Linda P. Morton


Are you considering outsourcing jobs for your business? Then you must know the advantages and disadvantages of outsourcing. Part 1 of this two-part article series covered the first three disadvantages of outsourcing. Part 2 covers four more.

Disadvantages of Outsourcing 4: Outsource Vendors Don't Usually Provide Needed Support

You will usually have difficulty getting follow-up support after a job has been completed and you've paid for it. Vendors don't usually check their messages for completed jobs, and most outsource service sites require that you communicate with vendors directly through the site.

Either way, it's difficult to get prompt follow-up service if you can get it at all.

Disadvantages of Outsourcing 5: Outsourcing Can Compromise Your Site Security And Products

You usually know little about outsource vendors beyond their reviews. Plus, cultures differ across borders. So what is considered unethical or illegal in the USA may be considered acceptable in other countries. This sometimes may result in an outsource vendor stealing your intellectual property, competing with you, and grabbing the your customers.

You also need to be aware that allowing a vendor into the code for your site can destroy it. Sometimes the vendor legitimately needs the code in order to complete your job, but you have no guarantee that the vendor will respect your property.

If you have to cancel a contract because the vendor either doesn't meet deadlines or can't complete the job, you run the risk that the vendor will take revenge by destroying your site.

Disadvantages of Outsourcing 6: Outsourcing Can De-motivate You From Learning Necessary Skills

When you depend on outsource vendors to perform tasks that are vital to your business success, you run the risk of becoming dependent on external people. They may not necessarily have the best interest of your business as a priority.

Disadvantages of Outsourcing 7: It's Difficult To Build Long-Term Working Relations With Good Outsource Vendors

Because of the nature of the outsource business, you may find a good outsource vendor, but not be able to hire the vendor again.

A good outsource vendor collects good reviews. As a result, good vendors win more jobs and stay busy. Just requesting one for a job doesn't mean that the vendor will have time to do your job when you need it done.

Disadvantages of Outsourcing: Conclusion

Deciding to outsource or not to outsource is an important decision for your business and one that you should not take lightly. Do your homework and make your decision with the advantages and disadvantages of outsourcing in mind.

You should give outsourcing decisions the same due consideration that you would give to hiring a new employee.

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