What you Lose in Outsourcing

While you figure that outsourcing could solve your problems and focus more on your business core competencies, you start to realize that there is more to know about outsourcing than the benefits it could do to your business.

Outsourcing deals with your fundamental principles that of which should apply to what your contracting parties should believed in.  Entering into service level agreements is just like entering into a relationship where both parties need to understand clearly, what is expected as results.  If such principles do conflict, unsatisfactory relationship could possibly occur and lead to an early termination of the contract.

The following are some of the disadvantages of outsourcing:

1. Outsourcing does damage the local labor markets.  It affects the jobs of individuals within the locality as companies begin to outsource causing job disruption and employment insecurity,
2. Outsourcing may decrease the quality or fail to realize business value. As the buyer (owner) lays his expectation and supplier (service provider) does the processing, the tendency that business value is not met.  Buyer should see to it that quality service is delivered to its clients. For call centers outsourcing, linguistic features such as accents, word use and phrase used may be a problem, thus resulting to lower quality of service if call agents are having difficulty to understand the client.
3. Higher staff turnover.  As staff is trained and company skills are transferred, growing number of employees leave.
4. Loss of control as to the hiring of qualified people to handle your product.  There are unreliable suppliers who would opt for higher profit, thus hiring or replacing qualified people with less qualified due to cost reduction.

To outsource means choosing your best partner and build trust to one another.