The notion of importing manpower and services from other countries has been around since the commencement of international trade. However, the essence of outsourcing as known today allows the global workforce to be connected in many more ways. Nonetheless, there are some outsourcing hindrances that we have to take into consideration before we can resolve that it is appropriate to our business.

The rewards of outsourcing can be offset by some obstacles. An important consideration is the economic and political condition of the state. Third world countries have a high chance to have unstable governments. In addition, the economic policies of these countries can change from one political cycle to the next. Thus, there is a level of uncertainty that increases the risk for businesses who want to invest in outsourcing.

A further significant hindrance is the language gap. Because of this obstacle, not all countries are qualified for outsourcing. Developing nations that are well-versed in English like the Philippines and India are perfect candidates. Businesses should also find outsource partners that completely match the skill-set that they need.

One more outsourcing barrier is a nation’s current infrastructure. This includes the banking system infrastructure, telecommunications infrastructure, and the legal system that keeps everything in check. Without a highly-developed infrastructure, the cost of subcontracting and the risks that are part of this kind of investment can be larger than predicted.

Once all the macro-challenges are considered, businesses will need to deal with other outsourcing challenges like cultural gaps, ability to integrate operations, training, and knowledge transfer. Working with outsource partners requires businesses to adjust their local operation to accommodate them.

Aside from all of these, there are also active challenges that requires consideration. This includes management challenges, security risks, time-zone, human resource management, and more.

Outsourcing is not for everyone. There are specific conditions when obstacles to outsourcing surpass the payoffs. In conclusion, you have to think whether outsourcing is beneficial for your business or not.

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