Is outsourcing the best option for your company?
Outsourcing has helped many companies expand while effectively reducing their overhead costs, by giving certain tasks to third parties and focusing their in-house resources on what they are exceptionally good at.
There is a huge benefit from using economies of scale for specialist suppliers, or using cheap labour overseas, companies are able to optimise their profit significantly.
While outsourcing isn’t always a success, reports show that businesses are getting smarter at outsourcing. A 2014 study Deloitte found that following a visible shift towards in-sourcing during 2012, companies are not keeping responsibilities internally; rather they are enhancing their relationships through the use of partnerships and refining their flexibility with operations.
Not everyone is convinced about outsourcing. Globalisation has perhaps developed at a pace where companies cannot keep up at a satisfactory level and clients can suffer by receiving sub-par products and services. The other problem with outsourcing it cannot save a business as much money as they first anticipated. When outsourcing something, the general rule should be that the customer should not be able to see any difference in quality. An example of this was when banks outsourced their customer support to cheap labour in Asia and abroad.
Is it time for companies to look again at onshore sourcing? Some say yes, others no. To some extent, western companies appear to be bringing it back to using in-house resources; however the problem lies with finding enough skilled individuals, as studies show there is currently a shortage within Europe.