Business Outsourcing – The Pros and Cons of Offshore Outsourcing
April 16, 2017
In the fast pace world of IT and computer software development, employers are often faced with the dilemma of a heavy workload vs. small employee numbers. The quickest and most popular way to resolve this issue has become outsourcing, both on and offshore. There are many benefits to outsourcing for both employee and employer, four great benefits for companies outsourcing are;
- Decreases overheads– Cost is a major benefit to outsourcing; both onshore and offshore as office space overheads are immediately avoided. Labour is often cheaper, especially when outsourcing offshore as wages are lower and exchange rates effect price. Onshore outsourcing also brings lower costs in terms of wage as employees are often looking for experience over high wages and are likely to work for less.
- Availability– A huge advantage to outsourcing both on and offshore is the availability of staff and the speed at which they can begin working. Training is often not required and therefore employers can rely on the experience and knowledge of employees to begin the tasks almost immediately. This is particularly beneficial within the IT and software development world where knowledge is vital.
- Controls workload– Companies are able to solve the issue of a large workload with confidence and speed, as outsourced employees focus only on the tasks given. Short term contracts are particularly popular with companies such as Accountancy firms, who experience shorter, intense busy periods throughout the year i.e. Audit periods and Tax returns.
- Continuity– Outsourcing provides companies with the appearance of continuity with staff as a high staff turn-over often reflects badly on companies. By outsourcing either on or offshore, companies are able to maintain a quality standard of work produced and avoid using numerous temporary staff on a short term basis
Of course with so many advantages come disadvantages to outsourcing, especially offshore, such as language barrier which can effect the quality of content produced. Offshore outsourcing may be cheaper in terms of labour but it eliminates any form of employer/ employee relationship forming as it is not feasible for face to face contact with an outsourcing employee, especially in Asia and India. This is perhaps why onshore outsourcing is becoming increasingly popular among larger companies looking for talented, short-term employees to help with workload. Within the UK there are particular onshore outsourcing companies who focus mainly on outsourcing younger, talented graduates and school-leavers in the IT and software development industry. The focus behind outsourcing younger talent is to help younger people gain experience and practice the new skills and knowledge learnt in College and school whilst supplying companies with professional and adequate service at competitive rates.
By outsourcing onshore, software companies are maintaining strong employment levels within industry as well as allowing younger employees to gain the valuable experience needed in an ever-growing, highly competitive market.