When should an organization choose not to outsource? When the results do not meet expectations, when they become too expensive, or when it is clear that an in-house solution would be more efficient and productive. However, outsourcing does not always yield the expected results. Some companies, especially those with a strong service orientation, see outsourcing as an additional cost.
They view it as an expense for which they can simply not be comfortable. However, outsourcing does have some advantages that might make it worthwhile for certain companies. One advantage is that when the results are less than desired, there is no need to cut staff, as a result of under productivity. The company simply makes use of another employee who is willing and able to do the job.
Another advantage is flexibility. A company does not have to hire a new team if it decides not to outsource. It simply eliminates one set of tasks. If the company needs to change the process a bit to meet its own objectives, it does not need to outsource those tasks as well.
There are also cost savings. Companies that outsource to countries like India are able to reduce their overhead costs significantly. Staff might need training in that country, but it is not necessary because the individual skilled in that area will do the task. On top of that, when should an organization choose not to outsource?
Cost effectiveness is another factor that influences whether a company should outsource. For one, when someone else does a task instead of the company, it costs less. The same is true when the task is performed by another company outside the US. Outsourcing costs might be based on currency exchange, but if it is less than what is expected, then it can be considered as a cost effective decision. Saving money is one of the reasons why organizations choose to outsource in the first place.
A third reason as to when should an organization choose not to outsource is because it lacks a competitive advantage. Some companies might prefer to outsource to countries with lower wages and infrastructure. But, this might not be in the best interests of the company. Such companies might have more competition when it comes to the kinds of projects they are interested in. Sometimes, it pays to get creative and start thinking outside the box.
When should an organization choose not to outsource? When there is a clear advantage to the organization and the amount of resources required is less than what is expected. Or when you do not feel comfortable with the people you are sending your tasks to. For example, if you are dealing with Chinese people and you would like them to translate your document but you do not have any personal or professional relationship with them.
When should an organization choose not to outsource? If you think that the task is too big and too complex for you or your employees, then maybe outsourcing is not for you. But, there are some tasks which are quite simple and can be easily outsourced. Such tasks might include data entry, transcription, research and sometimes even clerical tasks. Even these might not sound like outsourcing but in actual it is outsourcing as it saves you a lot of money and gives you more time to focus on other important aspects of your business.
When should an organization choose not to outsource? When you do not get the right deal when you outsource. This is because you might not get the kind of quality that you are expecting. Perhaps, the person you are sending your work to might not have the knowledge required to deliver your project on time. In such cases, it might help to choose a different company or outsourcing firm.
When should an organization choose not to outsource? When your needs and the needs of your business changes. If you are not satisfied with the services of the person you are sending your work to, then maybe it’s better to let him do it. However, this is something you need to discuss with your outsourcing company or person.
When should an organization choose not to outsource? There are times when it might be a good idea to let someone else take care of your work. But, when you cannot get the quality that you want, it might be better to just not outsource it. That way, you will not lose out on your revenues and you will also not make yourself vulnerable.