3 Major Issues with Outsourcing and What to Do Instead

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Image by StartupStockPhotos.
Image by StartupStockPhotos.

Over the past 20 years, companies have relied on outsourcing. It’s one of the most effective ways to reduce operations costs. In fact, a study from CreditDonkey revealed that 87% of companies who outsource cite cost effectivity as their top reason.

Still, outsourcing is not always all it’s cracked up to be, and even lower costs are no longer guaranteed. Companies often encounter a multitude of problems when they outsource or deal with outsourcing firms. At Bolton Remote, we help companies build offshore remote teams when they’ve found that outsourcing doesn’t do it for them. There are other solutions to issues you may encounter when you outsource. Here are some of them:

1) You don’t know who’s really doing the job.

When you outsource, you typically only speak with account managers and higher-ups. There’s a long chain of people between you and the person doing what you need done. Some outsourcing firms have taken advantage of this gap, getting third party companies to do the work you’ve entrusted them with.

You end up paying excessive fees and get poor results in return. “You need to be assured as to the quality and priority of your project.” says Hubstaff co-founder Dave Nevogt, and you can’t have these guarantees when your outsourcing firm is also outsourcing to other companies.

The Solution: Find a more direct option. If you have no budget or office space for an in-house marketing team, hire offshore talent instead. You know the exact people responsible for tasks, and you also enjoy the cost-savings of outsourcing.

2) The technology they use may be different from yours.

Tech-related roles are the most outsourced tasks today, (StatisticBrain) yet not all outsourcing companies have the resources needed to keep up with the latest trends in tech. This uncertainty is even more challenging with app design and development.

“The technology and resources of an outsourcing company may not be in line with app developers in the United States, or they may simply lack access to the same means of creating apps.” shares Sean Killan of Enla Labs.

The Solution: You can suggest technologies your outsourcing company uses, but you won’t have any guarantee that they will take your suggestions to heart. When you hire remote employees, you’ll be able to provide them with the right tools aligned with your own processes.

3) Less control for you and less accountability for them.

There’s never enough communication happening when you work with outsourcing firms. You relay what you need done, like web design, and it will be delivered as a finished product. If there’s something amiss, some companies might just stop communicating with you or disappear altogether.

Even if your payment system protects you from paying for poor work, precious time has already been wasted. “There’s nowhere for you to go if there is a grievance or issue.” shares Aaron Whyte of Mebsites. You can find an issue down the road and fixing these problems might no longer be within your contract with the outsourcing company.

The Solution: Make sure you specify the level of communication and transparency you require from the outsourcing firms you work with. If the amount of detail and frequency is an issue for them, find other offshore sourcing opportunities that have no problem with constant communications.

While a joint research from HfS Research and KPMG, 59% of companies who outsource look to increase it in the future, it’s still important to know that you have other options. You might be better off establishing your own offshore remote team.

When outsourcing is more trouble than it’s worth, we may be able to provide you with a better alternative. We can help you build an offshore remote team in the Philippines that you can directly communicate with and manage. Visit our website www.BoltonRemote.com.

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Bolton Remote

Bolton Remote helps businesses grow with dedicated remote teams. To find out more about remote staffing, visit BoltonRemote.com.
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About Bolton Remote

Bolton Remote helps businesses grow with dedicated remote teams. To find out more about remote staffing, visit BoltonRemote.com.