So they say, there is always two sides to every story just as well as there are two sides to every coin. Whether in life or in the world of business, it is imperative to look at both sides – i.e. advantages and disadvantages…but more so the disadvantages. In outsourcing, when a company decides to entrust certain functions to an outside supplier or independent firm, it’s better that they study and evaluate the pros and cons thoroughly first before choosing this course of action. Weigh the good against the bad to find out if it is the right thing to do or not. Knowing what you know gives you a certain edge. While “outsourcing” became popular due to its reputation as an economical solution for companies in developed countries, it is not the perfect alternative…it has its own disadvantages. However, as for me, the very root of all these “harm” lies the moment you select your outsourcing partner. Ask yourselves: Is it the right service provider for you? Is this the service provider who can guarantee to keep all information with utmost confidentiality? Are they professional in all aspects of their business dealings?

Let’s name the disadvantages about outsourcing:

Not obtaining the desired results/output
The scare is not meeting the agreed standard requirements. A service provider should have a set of quality standards to comply and synchronized deliverables. The client should be able to find a service provider that they can trust, whether they are a freelance worker or organization, they will be able to deliver the product or service as agreed on. Otherwise, the outsourcing company may suffer the consequences of incurring another cost of having the process done by another supplier to fulfill the right results. In other words, paying twice for the same job.

Less managerial/operational control
Companies that outsource can lose control over the processes, since functions become entirely, as a result, controlled by the outsourcing partner. Your service provider may not necessarily share the same standards and mission that motivates your company. Remember, they are also making business out of you.

The risk of your service provider to go out of business/runs into financial difficulties
When this happens, the client-company faces the hassle of finding another firm to continue the aborted project or will have to consider taking the process back in-house. Aside from that, project timelines may also suffer as a consequence.

Irritated employees of the client(company)
Employees of the outsourcing company may in effect feel some grudge the fact that some tasks are being outsourced, as a consequence, they may be reluctant to work with the outsourced staff willingly.

Irritated customers
Especially in call centers, if the service provider does not observe strict quality control in their choice of their agents, customers of the client-company can get irritated due to communication problems. When calling customers cannot understand what the customer service representative is saying because of language deficiency or annoying accent. This causes more frustration or contributes more unresolved customer complaints.

Security and confidentiality matters
Trade secrets and business information of a company such as payroll, medical records, or any other classified information can be put at the risk of being exposed if these kinds of data or knowledge will be shared with the outsourcing company. It is advisable to evaluate to which service provider you will entrust these kind of information. Include in your contract a penalty clause as an additional safeguard if unauthorized leakage of vital information occurs.

Although, there are disadvantages to this kind of system, still it is not reason enough to avoid outsourcing. The goal is to consider the value that it may add as well as the impact to your existing business.

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