Outsourcing.. a bad or a good decision?

Hundreds, if not thousands, of articles and debates has been and being addressed about the outsourcing, below are the frequently asked questions and concerns: – Why should a company think of outsourcing if it has an in-house staff who are doing the work under their control and eyes? – Since the staff are considered the most expensive assets in companies, why to think of replacing that assets with a temporary value? – What should I, as a company, benefit from outsourcing my work to X-company? – Will that X-company add value and be as serious as my own staff? – What about if that X-company failed or delivered a low quality? I will discover by then, I took the wrong decision!! There are many logic concerns associated with outsourcing and there are also risks. Each business model might has advantages as well as disadvantages, hence, the business owner should balance between advantages and risks then take the right decision to outsource or not to! Now-a-days, we are living under the pressure of the world economic crises, we just can’t offer to take a wrong decision, on the contrary, we should always think of minimizing the expenses and maximizing the profit. There are 2 main reasons companies go for outsourcing; either to reduce the costs and expenses, or to focus on their core business. I have been in the IT industry for the past 15 years where I used to act as either a client or a provider. In both roles, I noticed that most of the providers are keen to deliver a high quality; this is logic, simply, if the client is not satisfied, he will neither do business with them nor recommend them. So, I guess the fear from having bad quality (or late in delivery) is minimum, however, you need to keep a watchful eye on that to make sure at least you are getting the same quality you used to produce in-house. Companies are advised to think seriously about outsourcing to reduce their expenses by 40-50% and one more advice is to start with a small pilot project where the risk will be low for both parties, then you can “taste” the food by yourself and ask for more if you like or stay away from that “restaurant” in case you did not like their taste (quality, project management and price)! What do you think??

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