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Benefits and Risks of Outsourcing You Didn’t Know

Businesses outsource certain work to outside specialists when those jobs cannot be sufficiently handled in-house. Outsourcing could be done through a firm or contractor in your city, or by someone in another part of the world. Outsourcing helps companies achieve better results and it generally provides a solid return on investment. Here is a detailed look at some of the benefits and risks associated with outsourcing.


  1. Expertise and Efficiency

When you are dealing with a task that your team has not handled before, it is understandable to go with an outside expert. The contractor will have extensive experience at handling the job, which means they will do the job properly and in an efficient way. For instance, if you are outsourcing your tech or website creation, it will be better for your company than having someone from your team create your site when they are not a specialist.

  1. Focus on your Core

There are core business practices that your team will handle each day. And by outsourcing the work that is outside of those core practices, you allow your team to focus on what is important and what they are good at doing! So long as your business is choosing the right professionals for outsourcing, there will be no issues of quality or productivity.

  1. Managing Risk

There is always a risk that your team will be unable to complete a task or project successfully. When you hire someone from the outside, you are managing the risk. Not only is the responsibility falling on someone else, but it is falling on a specialist. Whatever job you have assigned to a contractor, it is a job they do all the time. If anyone is going to manage it successfully, it is that contractor.

Benefits and Risks of Outsourcing You Didn't Know - 1


  1. Exposing Company Data

There is always a risk associated with outsourcing, and giving others access to confidential company data is the biggest problem. While you can give out minimal and necessary information, it still means that someone who does not have a full-time contract with your company is privy to details that you may want to keep in-house.

  1. Lack of Quality and Focus

There are cases where contractors did not complete jobs to the quality standard that was required. In addition, some contractors can lose focus as they are completing more than one job at a time. However, this negative has more to do with who you are choosing for the job, as opposed to being a slight against outsourcing in general.

  1. Depending on Outside Assistance

While there is strength in a company recognizing where it is not strong, relying on outside help for vital tasks could be perceived as a weakness. You may not be able to rely on the same contractor in the long-term, and you may not always be so lucky in finding the right person for each job. Relying on outside help means that you are relying on external factors that are out of your control.

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