The word outsourcing is often considered a dirty word when mentioned in business. Companies want to, and do outsource, however, they are normally very hesitant to acknowledge or even advertise to the public that they do. Why is this? What gives outsourcing such a bad image? Why is it something that needs to be whispered and excused when speaking with clients?
Well let’s look at the most obvious reason that people tend to shun outsourcing.
“It takes away jobs from the local economy and gives them to people overseas.”
For people residing in countries that practice outsourcing such as the US, UK and Europe, this tends to be the first and strongest argument. It is certainly a perfectly understandable concern however, let us investigate this objection in further detail.
What is important to understand is that everything flows, everything is connected in business. Sometimes we don’t see these connections, and that’s what casts doubt. So how about turning it around to consider sending basic, mundane, repetitive and unrewarding tasks overseas is that it allows for the development of newer and “better” jobs.
We speak of progress, well this is progress in action. In order for jobs that require a different or more efficient method to be created, the original rudimentary task needs to still be accomplished; but at a much cheaper and efficient rate. This then frees up resources for the company. Companies that outsource produce greater revenues; they then have more wealth to invest in research and development. This in turn makes them more internationally competitive and superiorly placed to expand operations worldwide and develop more, better paying jobs.
The other primary reason to at least put outsourcing in perspective is because it is happening all around us whether you like it or not. To stay competitive you need to consider that your competitor may at some point be asking the same questions as you, and may in fact choose to utilise outsourcing for their benefit. This is not to say that you should outsource because everyone else is, but rather you should understand why other businesses have chosen this tactic.
An interesting research report by the National Association of Outsourcing titled Public Perception of Outsourcing states, “a staggering 80% of the general public do not think the outsourcing industry is helping UK PLC.” This is in spite of research last year stating outsourcing to be the second biggest contributor to GDP – weighing in with 8%, only a nose behind the 8.1% from the finance sector. On top of that, outsourcing contributes £14 billion in business taxes, and outsourcers hand over £21 billion in income tax.”
These types of numbers cannot be lying, there must be a legitimate reason companies invest so much in outsourcing. The most important word in the title of this article is not outsourcing, it’s perception. That’s what needs to be changed in order to understand something. Knowledge is also a key contributor in forming a well-rounded opinion. Outsourcing is not right for everyone, but at least do the research and run the numbers. If it still doesn’t seem like the right fit for you that’s fine, but at least at the end of the day you can tell yourself that you’ve done everything to make your business a success.
If you are considering outsourcing, please call us on +44 845 838 2462 or email us: firstname.lastname@example.org for a confidential and no cost discussion.