11 Pros and Cons of Outsourcing You’ll Want to See

May 6, 2020 860 views

The Pros and Cons of Outsourcing

Outsourcing is the process of hiring an outside company to perform services that are usually performed in-house.

It started in the ’80s and became more popular in the ‘90s and has become a part of many business strategies practiced today.

Outsourcing can refer to sending work overseas or within your country. I’m not going to focus on keeping jobs in the country or not (you can find this discussion in the resources section of this page.)

I would rather focus on how outsourcing can benefit your business as well as the issues that arise when you outsource.

The Pros of Outsourcing

1. You Can Work Around the Clock

When you outsource, especially when you are in different time zones, your work can continue around the clock; another party can work as you sleep. This speeds up what you can accomplish in the time you have available without the need to add extra shifts and staff.

2. You Can Reduce Overhead Cost

Overhead costs needed to run a business can be reduced. As a simple example, suppose you run a news-related website, and you hire a writer.

In addition to your writer’s wages, you need to provide a computer, desk, chair, phone, office supplies, etc. All these are overhead costs. When you outsource, you cut these costs because you pay a flat rate.

3. Savings on Taxes, Insurance, and Benefits

When you outsource, you don’t pay any of the costs related to payroll tax, unemployment insurance, insurance premiums, or benefits packages; you pay these expenses when you have a full-time employee.

4. Free Up Your Time

When you outsource, you give instructions, specifications, etc., and you should get the results you asked for. You don’t need to be bothered with any of the fine details or with project management.

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