Would you consider outsourcing?

MortifiedCow

Free Member
Oct 5, 2012
30
15
In theory, yes: outsource everything but your core competency so you can focus on the activities where you add the most value.

In practice, I struggled with outsourcing for years because of an unhelpful control freak streak, and the egocentric belief that only I could do certain things. Now though, I outsource everything I possibly can.

I think looking into outsourcing is a useful exercise for any business, because it forces you to think about the systems that your business is built on, and how those processes can be documented for other people.
 
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Paul_Rosser

Free Member
Jul 5, 2012
4,567
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London and Essex
Do you mean Outsourcing ? Or Offshoring ?

Every firm outsources a little as you get someone else to clean your offices, deliver your packages etc.

Having been involved in a large offshoring project with a big provider, I would never consider it again due to the poor quality of the work produced by the offshore workers, major issues with control and costs rising a lot from what was originally quoted.

I also found that the offshore workers in India would not take responsibility for any issues and tried to pass the blame around, however I'm told this is a cultural trait in large Indian outsourcing firms where staff are trained to never admit to the customer when a mistake has been made for fear of being sacked.
 
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Anastasiya

If you find a trusted company, you will surely gain from outsourcing. Outsourcing of the project will bring into your company the people with the skills you need. When certain functions are outsourced, companies also distribute or do away with the risks associated with running that particular function. Through outsourcing you can service your customers faster, provide better quality and decrease turnaround time. Instead of worrying about hiring people for your back office operations, you can focus on getting resources to grow your core competencies. As a result you`ll get cost and efficiency savings. The most popular outsourcing destinations in Europe are Germany, Poland and Ukraine.

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I own several businesses and one in particular we outsourced the manufacturing and within 9 months we reconsidered and took it all back in-house due to the unreliable quality of the manufacturer products - even when we had an established company inspect them prior to shipping!

Now we manufacture our goods in the UK, that way we can control the quantity and meet customer lead times.
 
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MOIC

Free Member
  • Nov 16, 2011
    7,398
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    myofficeinchina.com
    It all depends on the business and the services / products you are looking to outsource.

    Outsourcing often means paying more attention to the company you are outsourcing the service to, which contradicts the reason you would outsource.

    Outsourcing should both save you time as well as giving a particular service to someone who is more competent than yourself at handling that particular service.

    If you delegate work, but then need to spend time overseeing the person you have delegated the work to seems pointless.
     
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    L

    Lisa A. Pinto

    Pros :
    Less expense(on resources) more profit.
    High skilled resources having international exposure who may perform more than you expected on a very low cost.
    Capability to Scale-up Operations at short notice when you have not got such resources and you cannot deny the project.
    Difference in Time-zones utilized to Accelerate Turn Around Time.
    Some companies provide dedicated professionals for each client, having expertise in International Culture to minimize cultural barriers, if any.
    Cheerful work culture and employee-centric policies to minimize attrition and attract new talent



    Cons:
    Very few companies adhere to global standards and quality compliance.
    Lack of regular updates & necessary approvals by most of the off-shore companies.
    Stringent security policies with foolproof infrastructure to avoid theft or misuse of client’s Confidential Information

    Conclusion : Its very important to go through the profile and clientele of the company you are going to outsource before signing a contract. Understand the full procedure they follow for safe outsourcing.
     
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    Andyimporter

    Free Member
    Dec 21, 2012
    9
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    I am in UK from last 7 years so understand the European working culture.

    I get involve in many BPO/ IT outsourcing and the good thing is we refund full / part of the money if quality is a issue.

    If you are outsourcing then focus on the water tight T&C. Focus on long term partnership rather than one of the project.
     
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