Why Should You Outsource?

This is a question that continues to baffle many. As with anything; outsourcing has it's, "Pros" and "Cons" and it depends on the angle you look at the issue from. Employees tend to view outsourcing as an elimination of their jobs. The reality is, the job you have you own, it is loaned to you until either you decide to leave or you are asked to leave, the later tends to be the most common case. For business owners and some management, outsourcing allows the playing field to be leased. It offers an opportunity to leverage talents and skills of top professionals that traditionally was out of reach.

Outsourcing also offers a scalable solution, allowing a business to add on staff when needed and reduce staff when not. Company's can also take advantage of fluctuations in currency, in order to reduce labor costs. Many times for management and employees, when done strategically, outsourcing allows staff to focus on the key parts of the business, while still maintaining daily tasks. Outsourcing, in particular BPO (Business Process Outsourcing) provides a means of having back office functions performed without sacrificing value resources.

Good or bad, the nature of business today has changed, with some companies and industries fading out (manufacturing in the US, the US Postal Service, Borders Books, Blockbuster Video, and many more). Companies that have not embroidered the 4 key strategies of: Virtualization, Cloud technologies, Mobile platforms, and BPO will find that their business model will not fit the current and future business climate.

For the employee, if they choose to remain employees need to begin developing new skills that will help them to adjust. All in all this is a great opportunity for businesses and employees if they learn the keys to leveraging the various forms of outsourcing. Also, it is worth noting that not all outsourcing is offshore, there are many US companies that use US companies to perform certain operations.

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Two of my many experiences were with GE Capital and National Data Corp working on their support desks. For GE, we were supporting NEC computer products and Microsoft software products. At National Data Corp, we supported Credit card terminals and POS systems that were programmed for VISA, MC, and Redbook. Support was provided from locations in Atlanta and Norcross Georgia. We were able to save each company money by reducing their labor costs. We were trained and continued to receive training on their products so that we could offer their customers the quality assistance they needed.

So, you decide what will work for you as an individual or as a company, research for yourself the benefits and drawbacks of outsourcing and figure out how to make the drawbacks work in your favor.


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