Out of the numerous important aspects of economy building and business building, outsourcing has fast become an indispensable element. And, as the common saying goes, you should only do what you’re good at – and outsource everything else.
Outsourcing, in general, has a huge range of benefits for any company, including:
- Less costs than employing a full-time worker, meaning you can save on costs and improve your bottom line.
- The opportunity to grow your business and increase your volume of work.
- Access to those with expert skill sets and talents that may not exist in-house.
- Working with experts when you need them, without long-term obligations or commitments.
- Increased efficiency throughout your operations.
But when it comes to your business, whether you simply want some web development done or want to farm out the majority of your operations, should you outsource locally or internationally?
1. Local Outsourcing – What’s Great About It?
- Face-to-face –Local outsourcing can be great for businesses that require people to either work onsite or that need employees which they occasionally prefer to meet with face-to-face. This can be useful when it comes to things like website development and design, where you’ll mostly probably want to discuss your visual needs in person, rather than over email or phone.
- Long-term value –Outsourcing at the local level can also mean a better return on your investment. If you develop good relationships with your outsourcing staff, they have the potential to get to know your business and ultimately come on board in a more permanent capacity, providing you with a valuable employee in the long term.
- Flexibility –Outsourcing locally allowsmuch more flexibility for you and your business. If you have someone that only comes in twice a month, for example, you may be able to get him or her to come in for an entire week during busy times.
- Fewer communication issues –Better communication between your staff can also be one of the highlights of local outsourcing, since there are no language barriers to get around.
- Providing local jobs –Local outsourcing meanshelping your economy and creating more jobs for local workers as well, rather than giving those much-needed jobs to people overseas.
One of the main drawbacks of local outsourcing is that it can become quite expensive, especially when larger volumes of work are outsourced. Ultimately, this means that your expenses and profits can suffer – often much more than it’s worth. If this happens, you may want to look into outsourcing your work overseas.
2. International Outsourcing – Should You Consider It?
- Costs –International outsourcing is generally thought of to be much more cost-effective than local outsourcing, particularly in countries where wages are much lower. This also means that you can hire a great number of workers. However, if you need to dispatch someone overseas to oversee your operations, it can end up becoming more costly.
- More productivity –International outsourcing can also mean a better efficiency in your processes, thanks to differing time zones. Work that is set by you at the end of the working day, for instance, can be completed overnight and be ready for you the next morning.
- Currencies –Outsourcing internationally can also be a great way of taking advantage of currency exchange rates. If you find your dollar is performing highly, you may find that when it comes to paying overseas wages, you’re getting much more bang for your buck. It can just as easily swing the other way, however, opening you up to huge financial risks. If you do choose to outsource overseas, ensure that your finance team have astrong forex education behind them and an ability to deal with a fluctuating currency market.
Of course, international outsourcing does have its downside. You may face constant communication and language barriers, it requires more management,and you might discover that the expertise or quality of work is not up to standard, which can have implications for your image and reputation.
Depending on your business, you could also find that some of your clients will not look favourably upon your decision to use international workers, whether for reasons to do with quality control, confidentiality, or ethical concerns about the local economy.