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Whatever stage you’re at in growing your business, there are probably times when you could do with an extra pair of hands.

Outsourcing Advantages and Disadvantages

Outsourcing is one business process or form of an agreement where a party with the essential abilities and expertise is hired so that to accomplish and run prime practices for an organisation. It usually involves the recruitment of another’s company employees and also involves the transfer of employees and assets within the organisation as per the requirement.


Business Outsourcing Services

Outsourcing of business, HR services, IT services, etc., have proved to be a boon to numerous mega-corps like Apple, Nike, IBM, Walmart and more. Outsourcing of IT services/IT outsourcing is so widely practised that it has made outsourcing a trend as it works wonder in the marketplace for all.


Outsourcing of software development or IT services is commonly chosen by the organisations considering how burdensome and unyielding it can turn out to be.


Advantages and disadvantages of outsourcing

In the right context of use and unfolded adroitly, outsourcing can be a remarkable decision for a firm, aiming to corner the marketing campaigns. But indeed, there’s the other side of the coin that is meant to be taken care of this here shall we make it easy for you to and discuss some advantages and disadvantages of outsourcing.


What are benefits of outsourcing?

Don’t miss out on these benefits of Outsourcing for your game plan |

  1. Expert and proficient team: No one can be good at everything so, having a core team which have a speciality in a particular field can reduce the security vulnerability as a whole and outsourcing strategy also does play a preeminent role for the same.

  2. Cost-cutting: When one gets down to business, the cost is to be kept a check on and outsourcing sorts the problem as it turns out to be much cheaper and better than hiring permanent full-time staff for an organisation and also there’s a major reach of outsourcing accounting, software development or logistics in the marketplace where party members are ready to go the extra mile for personal growth.

  3. You’re in the driving seat! IT outsourcing or outsourcing of financial services is widely practised and so keeping a check on the work progress, effectiveness and efficiency is a must. Outsourcing makes the project management effortless and facile because of the automated and dynamic platforms provided.


The Disadvantages of Outsourcing

These are often highlighted as a reason not to take this delivery option but they have to be put in context |

  1. Security-related risks: Bypassing on data to other people or the freelancers or outsourcing party, you do place personal or consumer’s data or information at risk because it can be misused in one or the other way and caution is to be kept for data protection. The outsourcing process can anticipate this as a key risk and set up systems which look to eliminate the risk. Choosing a recognized and reputable outsourcing agency is the starting point to reduce this risk to zero.

  2. Reduced quality control: We believe you get out what you put into an outsourcing arrangement. While the work you sent out will come back quickly you may think it will lack the quality and efficiency of your in-house team. This disadvantage is overcome by having a strong working relationship with your outsourcing partner and also having clear processes on how to manage the entire process. In Shergroup we made our onshore team the trainers and knowledge-based experts and trained our offshore team to do the processing. We then put our onshore team into new roles in working with customers. Perhaps you can do the same!

  3. Financial related risks: Anticipate the downsides and get insurance in the place where you can to cover the cost of a “dropped ball”. Draw up a sound contract which is fair to both you and your outsourcing partner. Have this checked by your lawyer to ensure your local laws and compliance requirements are factored into the contract. The concerns you anticipate should be covered by this agreement.

Summing Up


Outsourcing is a way to grow your business and to scale up your operations. It may help you save overhead, and it may help you streamline your processes onshore. Reach out to Shergroup for an exemplary experience of outsourcing and many more business services for the smooth sailing of your business.

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Last updated | 19 July 2023

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