The role of outsourcing in business is heavily debated when it comes to the merits of this practice across many sectors. Some fields require on the ground expertise that only the internal party can carry out whilst larger organizations sort short-term contractors who can execute a project in a quick timeframe.
So what works best and what are the merits of outsourcing that should be discussed? Here we will outline both sides of the debate to categorize the advantages of disadvantages that arrive with each.
Positive: Short-Term Costs
You have your own budgets and financial targets in mind when outsourcing a task. The contract or agreement will only last so long as the project is in play and the organization can move on to other options once that period has expired.
Negative: Long-Term Costs
Continuing to return to experts in the field to carry out individual tasks does not help the bottom line. Should you train up an individual or team to undertake these activities, then having that managed internally will improve the bottom line over a period of years.
Positive: Short-Term Expertise
An outsourced party will be equipped with the skills to carry out the project on the spot. Whilst there might need to be discussions surrounding the circumstance and nature of the program, they can insert themselves into the equation to help proceedings move forward.
Negative: No Internal Knowledge Gleaned
If you are returning to outsourced parties to execute a role continually, then what are you learning about this practice? This intellectual property that can be learned should be part of your brand’s operating model and housed as an asset long-term.
The old saying is true in this scenario: give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime.
Summary
There is a clear benefit that arrives with outsourcing and it all revolves around from a short-term point of view. The labor cost is cut down and you have the capacity to tap into a wealth of knowledge and expertise immediately.
From an efficiency standpoint, then outsourcing stands to reason in the interim.
What you gain by educating staff internally to ignore outsourcing is a team that is well equipped in-house to carry out these tasks.
It will cut down on resources in the months and years to come and have an asset on the premises to perform when called upon.