Why Outsourcing By Yourself is not viable for 99% of Companies:

“Only companies such as Dell, Shell, Microsoft etc can conventionally outsource, (go to India and setup offices themselves) because they are multi-billion dollar companies. While the majority of companies are small to mid sized businesses this approach is not always feasible, either because or risk or just a lack of knowledge of how to.” A statement I have heard a lot in my travels.

However to say it is not possible is an incorrect statement, I myself did that very thing. I created a center of a little over 100 employees in Hyderabad, India and 10 in Cebu, Philippines while having less than 10 in the United States. It is not however without its very steep learning curve.

Therefore conventional offshore or onshore outsourcing is possible for 99% of companies  it is however problematic for substantial reasons 1) costs 2) time and 3) the effort is involved in:

• Setting Up Abroad: i) leaving your country ii) hiring/purchasing a office iii) purchasing all technology and office equipment iv) researching best place to locate.

• Understanding a new Cultures: where do you begin when it comes to setting up a office in a completely foreign country? Furthermore, if one does not know the culture, customs and practices of a country then executing even a simple task can cause great difficulty. Without cultural and local knowledge of how things are done in a country, outsourcing to a foreign country is a very difficult process.

• Recruitment of Employees: how much research and time would you need to invest before you would know where to get the employees you want?

• Quantity of Work: 99% of companies only want to employ between 1-20 employees when they outsource their work. The majority of companies are looking to shift remedial every day work/back office operations or employ specialist/highly skilled professionals they can’t find or can’t afford back home. 99% of companies are not looking to outsource whole departments of 500 employees. To employ between 1-20 employees via conventional outsourcing means is simply not cost-effective, thereby making outsourcing a unrealistic option for the majority of companies.

Does this mean that SMEs and SMBs cant take advantage of this global market? The answer to this is no, there is no reason why organizations cannot take advantage of the significant saving opportunities afforded by either onshore or off shore outsourcing. The key is to find sources that are competent to deal with the issues on the ground. You wouldn’t trust your plumbing job to an accountant now would you. Anyone can outsource; all companies irrespective of size, self employed workers, employed workers or anyone wanting some office assistance: just find the right experienced and competent provider.