The Benefits of Software Outsourcing for Businesses
With outsourcing growth expected in the years to come, there may never be a better time to learn more about this topic. And it’s also very important to understand the effect outsourcing can have on company culture.
Advantages Of Outsourcing
Knowing the benefits of outsourcing will help you decide if this is something that could work for your business.
1. Lower Labor Cost
By searching a global talent pool, it’s easier to find the right talent at the right price. You don’t want to trade quality for price, but outsourcing often allows you to get the best of both worlds. Every company has its own reason for doing this, with many chasing lower labor costs.
2. Access To A Larger Talent Pool
Many companies have found that outsourcing gives them access to talent in other parts of the world. When hiring an employee, you may only have access to a small, local talent pool. This often means you have to compromise. If you need specialized help, it often makes sense to expand your search.
3. You Don’t Have To Hire More Employees
When you outsource, you can pay your help as a contractor. This allows you to avoid bringing an employee into the company, which saves you money on everything from benefits to training.
Cons Of Outsourcing
Despite the many benefits of outsourcing, you don’t want to go down this path until you compare these to the potential drawbacks:
1. Problems With Quality
Anything less than this will be a disappointment. Despite all the benefits of outsourcing, it is only a good thing if you’re receiving the quality you expect. This isn’t to say you can’t successfully outsource particular tasks, but you need to discuss the expected quality upfront.
2. Communication Issues
This doesn’t always come into play, but it’s one of the biggest potential drawbacks.
- Does the person have access to a reliable internet connection?
- What time zone does the person live in and how does this match up with your business hours?
- What is your preferred method of communication? Phone, email, instant messaging?
According to Cameron Herold, the founder of a COO training program, communication is essential to success in the business world.
3. Lack Of Control
There are many reasons for this, including the fact that you are often hiring a contractor instead of an employee. Although you can provide direction in regard to what you need to accomplish, you give up some control when you outsource.