Potential disadvantages of outsourcing In an increasingly difficult economic environment, many businesses are struggling to find a balance between minimizing costs and ensuring high quality of work. Outsourcing can be defined as hiring external specialists to perform your non-core business tasks. Outsourcing allows businesses to focus on core functions, it can improve efficiency and save costs. However, at Ascension 6, we know how important it is to be transparent. There are certain considerations your company should make before hiring an offshoring provider. Outsourcing may come with certain disadvantages. It is important to choose an outsourcing provider like Ascension 6. We will be upfront with you from the outset about the impacts that outsourcing could have, and the ways that we can mitigate these potential disadvantages. In this post, we indicate some of common disadvantages of outsourcing and what Ascension 6 can do to minimize the impacts to your company. Hidden costs Although outsourcing can save you money, not all outsourcing providers are transparent with pricing. When you hire an outsourcing company, you will sign a contract with a list of agreements. If you do not read the terms carefully, you could get hit with unexpected costs. Be aware that outsourcing companies are experts in contracting. They may take advantage of companies that are less knowledgeable and that have limited experience with outsourcing providers. This will make it easy for you to miss hidden costs. At Ascension6, we are completely transparent when it comes to our costs. We ensure our customers are aware of all pricing expectations prior to signing a contract with us. Lack of control Another potential disadvantage of outsourcing is that is that you may lose managerial control. Although you provide your own company’s direction and strategic orientation to your outsourcing service provider, you do ultimately sign over management as well as decision making to an external organization. If that person or team does not work on-site, it can be difficult to maintain the level of control you desire. This could potentially reduce the quality of the production. For example, if you sign a fixed-fee contract, the only way for the offshoring company to increase their profit will be to decrease their expenses. As a result, the production may fail to meet your standards. When working with Ascension 6, we guarantee that we will always prioritize our customers’ requirements. We commit to always provide you with the highest-quality services and products. Confidentiality risk Whenever you pass your customers data to another party there will be increase in the confidentiality risk. Whether this is a new business who you are contracting with, a new employee, partner or supplier, there will always be this additional risk. This is the same with offshoring. The risks however can be minimized and at Ascension6 we prioritize our customers security and confidentially. Impact on company culture Outsourcing is a great way to increase the productivity and efficiency of your business, but as an owner you should be aware of the impact it could have on your company’s workplace culture. Here are some potential disadvantages of outsourcing to look out for so you can rectify this situation quickly or avoid them entirely from the outset. At Ascension 6 we integrate our staff completely with your in-house staff to make it feel like one team, not two separate teams. We aim to bridge any cultural barriers by training our staff to work in line with your company culture and to provide services of international standards. Our teams are flexible and can adapt quickly to changing environments. What Ascension6 can do for you At Ascension6, we believe that when deciding to hire an outsourcing provider, companies should always consider the advantages and disadvantages. This will help you have a balanced view. You will then be able to make the best decision for your company. For transparent advice on all your outsourcing requirements, you can contact us today on [email protected]
