Is Outsourcing Right for You?

A good deal of debate has happened in recent years in the U.S. about the subject of overseas outsourcing. It is a touchy subject and one which is worthy of discussion. In this post I would like to eliminate a number of the common myths on each side of the argument. If we do this we will be able to see clearly and make smart decisions whether outsourcing is ideal for our particular context (and there isn’t just one correct answer to that question).

It takes our jobs away. The most prevalent argument against offshore outsourcing is that it takes jobs away from hard-working Americans. This is an honest concern, particularly in light of the difficult economic times people in America have experienced in recent years. The issue with this argument however, is that it does not take into consideration the long-term impact of what actually happens when those jobs go overseas. In the long run outsourcing pushes Americans to do what they do best, innovate and create. America has flourished partly because of it’s remarkable ability to innovate. So when simple computer-programming jobs start going to other countries, it makes the computer programming workforce figure out new strategies to thrive in the I.T. industry. They’re forced to innovate new industries and hence, new jobs. The short-term impact of job loss in the U.S. is canceled out by the innovation of new market sectors and the jobs that come with those new industries. It is also offset by the opportunity it affords to capable and intelligent people that are trapped in poverty because they happened to have been born in an impoverished country. In reality outsourcing generally helps to lift people out of poverty. It’s a good thing for the U.S. and a good thing for poorer countries.

It reduces quality standards. Yet another popular argument is that offshore outsourcing decreases the quality of the services or products that are being outsourced. There are legitimate concerns in this area. We’ve all been subjected to frustrating customer service phone calls with somebody in some other nation whose English accent was unintelligible. This is one good example of outsourcing gone bad. Too many companies have too quickly risked their reputation among their clientele just for the sake of cutting costs. That is risky. But there are other good examples of outsourcing that don’t result in a decrease in quality. In fact the complete opposite is true. It’s possible to end up getting a better quality because your money goes significantly further. You can work with the most skilled individual because they’re still more affordable than an typical professional in the States doing the same service.

3-Question Test. Ultimately, outsourcing can be a win-win if it is used properly and in the proper fields. While customer care overseas outsourcing can be damaging to a company’s name, hiring a graphic design company to create outstanding quality graphic design work isn’t. Ultimately you need to ask yourself 3 questions: 1) Is It Possible To outsource this specific service without risking my reputation or my company’s reputation? 2) Can I end up with the same or increased quality product or service at less cost simply by outsourcing it? 3) Does this specific sort of outsourcing provide opportunity to people in a far more challenging economic situation than the ordinary American rather than exploit them?

If the answer to these 3 questions is yes, then it could be that outsourcing is the ideal way to go in your case. If the response to any of them is a “no,” then don’t use outsourcing for it.

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