Most of the time, the advantages of outsourcing outweigh the disadvantages of outsourcing. It is always important to complete a due diligence of the process at hand and carefully weigh the Advantages and Disadvantages of Outsourcing.

Advantages of Outsourcing

Speed & Specialization: Tasks are usually completed faster and with better quality output. BPO providers usually specialize in completing certain tasks, they are experts in processes and have pools of labor that can be scaled up or down in a relatively short period of time.

Concentrating on Core Business Objectives : Outsourcing allows business’s to  focus on core business objectives and save valuable precious time that would otherwise be devoted elsewhere.

Mitigate and Manage Risk: As the BPO takes on the task of running and specializing in the process they also take on that responsibility of work delivery and in many cases supervision. Rather than having all work completed in-house, several can be outsourced.

Reduced Operational costs: Outsourcing offshore can be significant in reducing operating expenditures associated with staff. This can be in terms of recruitment, termination, superannuation, overtimes, holiday loadings, penalty rates. The list does go on. A key advantage is with places like the Philippines costs of labor are significantly less than those in

Possible Disadvantages of Outsourcing

Risk of sharing confidential data: When a business outsources  services,there is always potential to share sensitive and confidential  information. Always understand the risk, review terms and conditions prior to signing any agreement.

Hidden costs: Outsourcing is typically a way for a business to lower costs. However there are times when there may be costs that may not have been anticipated. In the event that the BPO staff are no performing or the output is poor in nature what steps are being taken to rectify this ? Also carefully take time to understand any agreement between your business and the BPO. What is the length of the agreement? Are there exit penalties? Is the BPO results driven, answerable and proactive in their approach?
Common Goals and Expectations: Always important that expectations on deliverables are in sync between the business outsourcing the process and the BPO completing the work. Frequent communication and feedback and reaching common ground on realistic expectations will bode well for minimizing a divergence on expectations and goals.

All advantages and disadvantages of outsourcing should be carefully assessed prior to any decision. Consider the process at hand; Can it be completed effectively, what are the revised cost benefits? What are the potential perceived advantages and disadvantages? Expectations realistic? What are all the risks? How will this help the organisation in the longrun?

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