To Outsource or Not to Outsource?

Outsourcing is a very clever way for companies to fill roles, they have the opportunity to have access to the top talent through this method of employment. However, like all good things, there are some disadvantages to outsourcing. The countries that are being outsourced play a big role in the success of this activity.

Outsourcing is when a business hires a party outside a company to perform services or create goods that were traditionally performed in-house by the company’s own employees and staff.

It is like using a laundry service to do your laundry instead of you doing it. You are saving yourself a lot of time, the admin of ironing or hanging up the laundry, and the service is done exceptionally. Like using a laundry service outsourcing comes with many benefits too.

?Companies usually use outsourcing to cut labour costs, salaries for their personnel, overhead, equipment, and technology. Outsourcing is also used by companies to dial down and focus on the core aspects of the business, allowing them to execute their core offering well.

Here are some other benefits of outsourcing:

·????????Saving on costs. Outsourcing gives a company access to cheaper and more skilled labour from other countries or regions, as well as reduces the expenses associated with overhead, equipment, and technology. Having access to skilled labour will ensure the business's service/products are produced at the highest levels.

·????????To save time and effort. Outsourcing helps a company delegate some of the time-consuming or non-core tasks to external experts, allowing the company to focus on its core competencies and strategic goals. Which will increase the chances of growth.

·????????To increase efficiency and quality. Outsourcing can help a company leverage the best practices and expertise of external providers, who may have more experience, knowledge, or resources in a specific industry.

·????????To lessen operational risks. Outsourcing can help a company cope with fluctuations in demand or capacity, without having to invest in hiring, training, or retaining more in-house staff. Outsourcing can also help a company share some of the risks and liabilities with the external provider.

If you were to look at the history of outsourcing, it has not always been a success for some businesses, this is due to the major differences between cultures.

Many of the countries that are commonly used to outsource, have a reputation for exploiting workers and the actual execution of the job is not up to standards. As said early, everything has a downside but that does not mean outsourcing should be ruled out, it is a very valuable business strategy.

Some of the downfalls of outsourcing are:

·????????Job losses. Outsourcing may take away jobs from local workers and harm the economy, it can also create new jobs and opportunities for both the outsourcing provider and the client, as well as stimulate innovation and competitiveness. By using a specialised company to perform a key service for a business, the overall service/product produced will be exceptional and increase the business's profit therefore creating more jobs in a different skill set. There is nothing better than the knock-on effect!

·????????Communication and cultural issues. Some people worry that outsourcing will create misunderstandings or conflicts due to language barriers, cultural differences, or time zones, but this can be overcome with effective communication and collaboration tools. This downfall can be easily avoided by a company outsourcing to another business that speaks the same language and has similarities as a communication barrier may have a major effect on a business’s production.

Ever since the major technological advances that have occurred thanks to Zoom, Microsoft Teams, and other brands, the use of outsourcing has become increasingly easier. As the management and communication between the two parties are more efficient through virtual meetings and instant messages/emails.

The Covid-19 pandemic played a major role in businesses adapting remote working as no one was allowed to leave their houses and the risk of getting Corona was too high. Even though that was a very strange and scary time, the world has seen major technological advances and employees proving to employers that working from home is possible.

In response to the world going back to normality, many brands have implemented hybrid working systems. Which involves employees working from home a few days during the week and working in the office the other days. Who doesn’t love working in your PJ’s all day?

It gives employees the flexibility to choose where and how they work best. One of the best outcomes of hybrid and remote working is the increased well-being of employees, as we all know that we perform our best when we are feeling good and healthy, and from the comfort of our homes.

Although the link between remote working and outsourcing may not seem so clear, the two have more similarities than you think.

Both outsourcing and remote working do not require constant supervision by the employer and your execution and performance play a major role in your job retention.Covid-19 proved to the world that work can still be done together, without having too physically be near one another.

Outsourcing has a bad reputation because some people associate it with negative outcomes, such as poor-quality work, job losses, communication and cultural issues, and security and legal risks.

However, these outcomes are not inevitable and can be avoided with proper planning, management, and collaboration. Outsourcing can also have positive impacts, such as cost savings, efficiency, innovation, and diversity.

It is imperative that the companies working together through outsourcing have common characteristics such as cultural and legal similarities. An example of two countries where outsourcing will be successful, are the United Kingdom and South Africa.

These two countries share so many common characteristics. One of the main ones is that both countries speak English, and you’re already at an advantage as the risk of communication issues is significantly reduced because you can clearly understand one another. There will be no need for Google Translate.

They share other cultural links such as a similar law and finance system, which makes the understanding of employment law a little bit easier. Reducing the risk of breaking the law from an employment point of new, which is a big no-no in all industries.

Another common tie is the love for cricket and Rugby.Having a common love for something outside of work is key to building a strong company culture that works well. And who doesn’t love a little bit of friendly rivalry between colleagues?

Another key similarity is the same standards of work, which is essential to a successful outsourcing relationship as producing the same quality of work is vital.

Nobody wants to keep on an employee that is not performing to the company standards… why would a company continue to outsource with a company that is decreasing their quality. Poor quality of work is a very common issue with outsourcing.

However, this issue comes as a result of the company offering outsourcing services exploiting their workers with a very hectic workload. This is where a good employment law comes as an advantage.

Although the reputation of outsourcing is not the best, if two very similar countries utilize each other services through outsourcing- the end result will be marvelous! Before engaging in any outsourcing services, make sure there are no language barriers, the country has good employment laws, and the standard of work is the same as yours. Outsourcing may be the key to success.