We’ve all seen the video clips and read the articles about the benefits of outsourcing and why the workflow approach is valuable for small and large businesses in varying industries. Nothing new there. We’ve also seen the blog posts about the cons of outsourcing and listened to thought leaders give their two cents regarding why you shouldn’t utilize outsourcing for your company. Let’s talk about those and if they’re really cons or not. We’re here to bust 4 potential drawbacks of outsourcing and tell you why you should think about these alleged flaws from a different angle.
There is no control in outsourcing
Forbes states in an article that “lack of control,” could be an issue when it comes to outsourcing. The truth is that companies that outsource should never feel like they have to take their hands off of the wheel. A feeling of a loss of control possibly stems from a lack of trust. At Artisan Technology Group, we root our relationships in a foundation of trust. Clients are never looking to give up their tech space and lose that oversight. More than a relationship, it’s a partnership. It’s important to know that with outsourcing, it is always a balance between the client’s word and the expertise of the outsourced partners, doing what they do best. A client still has their hands in the pie and they are overseeing the project, while the outsourced company works to find the best solution for their problem. The Forbes article also states that “since the person is not working on-site, it can be difficult to maintain the level of control you desire.” It’s necessary to mention that outsourcing does not necessarily equate to off-site. Outsourcing commonly involves teams on-site, working with the client for a portion of their time, before they head off-site to get to work. Consider an outsourced partner as an extension of the team, not a distant worker.
Lack of communication is an issue
That same Forbes article mentions “time zones,” and a “reliable internet connection,” as some of the “threats” to communication that outsourcing can pose on your company. This seems to be a good time to debunk the myth that all outsourcing companies are based overseas or in different time zones with unreliable wifi. You can probably find outsourcing in your own community if you look around! While these challenges might appear in a typical outsourcing model that uses offshore development, it’s crucial to remember that not all outsourcing companies are created equal. Just as outsourcing doesn’t connote off-site, it also doesn’t have to imply offshore. The reality is that time zones can be a major hurdle for offshore models, but for us at Artisan Technology Group, all of our people are right here in Kansas City, so this is not even on the radar for us. The important takeaway is that you can outsource the development of a product to a team that is right in your backyard. With this model, you gain the beneficial elements of face-to-face communication, side-by-side collaboration, and you will experience far less pain points in regards to communication barriers that typical offshore outsourcing models feel. If expectations are set up from the beginning, communication should follow just as it would with anyone inside or outside of the office.
You will forfeit quality
If you’re dealing with quality issues, it sounds like you simply hired the wrong company or opted for a cheaper, faster route that doesn’t deliver what you want. It all comes down to a company’s primary goals for outsourcing. If you are outsourcing to save money, you just might be giving up on quality, and that’s just how it goes. If you are outsourcing to gain expertise and experience to ensure that something is built the right way, you should expect higher quality than what you could produce internally, because you’ve hired specialists. Rates may seem more expensive than the cost of your internal staff, but remember that you are getting a team of experts in your corner, which is a huge benefit to outsourcing. With Artisan Technology Group, for example, you get a product manager, a UX designer, architects, engineers, release managers, and other professionals that are now an extension of your team. All of these roles would be prohibitively expensive to hire, which is why, even at higher hourly rates, outsourcing can be cheaper and far more cost effective in the long run. If you have the right partner in place, you should receive the quality solutions that you need the first time around. Outsourcing should meet or exceed your standards, and if it doesn’t, that has nothing to do with outsourcing; that’s a hiring problem. It would look the same if you hired an employee who isn’t producing like you hired them to do. Are you never going to hire for that position again? No, you are just going to hire someone different.
Employee morale is sacrificed
What about outsourcing having a negative impact on your in-house employees? An article from The Balance Small Business, says that “the act of outsourcing could signal that their job is at risk and will eventually be eliminated by being given away to the outsourcing company.” If you are outsourcing to leverage the expertise of your outsourced partner, and not just looking to cut costs, it can actually help with growth of your internal team. Companies can get a lot more value out of their outsourced partners than simply a timely solution or quality product. At Artisan Technology Group, we engage with internal teams and we share our expertise and knowledge with the client’s employees. A good outsourcing partner shares best practices and helps to educate associates. This collaboration allows for internal teams to experience growth and self-improvement, which directly affects the company’s success. Outsourcing is more than product delivery; there is a lot more value there than expected.
There are bad eggs, of course. There are ups and downs in business and we’ve all hired someone that we shouldn’t have employed and maybe you’ve outsourced with a company that left a bad taste in your mouth. Let’s not let those companies give outsourcing a bad name. Trust who you hire to do your work. You can outsource and support local companies! You don’t have to look offshore for quality deliverables. Understand how their capabilities will align with yours. Most importantly, know that it’s a business relationship like any other. A partnership with a reliable outsourcing company can work for you and do wonders for your company, no matter what the blogs say.
Looking for innovative technology solutions that are built for your business? Contact Artisan Technology Group!