What Should Not be Outsourced

With all the debate about outsourcing today, many companies are using to perform the tasks more and more. But there is a limit. In fact, three of them:

Cost – When is it more expensive to outsource than doing it in house, outsourcing is a bad idea. This is often not easy to determine. Sometimes, the expert in outsourcing may name a household expense, because experience is limited and the market rate for service is high. You might be better than hiring and training in this case. Take into account the training of employees, wages and benefits and contributions of an outsourcer. There are some intangibles that must be taken into account. Outsourcing can come with some experience you can have at home. How much you will save in the elaboration of issues?

Loss of control – no matter what the project, you always want the reins to be held by company employees and executives fully understand not only the project but also the overall objectives of the company and management. Without that essential link, the project might inadvertently diverted into a wrong direction. In addition, the company is responsible for the results of the project, so it should be a vital part of every decision taken. The best is a daily contact and updates. When this can not work with the company outsourcing proposal must be carefully considered looking elsewhere, even at home.

Contractual restrictions – Of course you should never outsource the work when it is contractually obliged to do yourself. Review your customer agreement for that language carefully and ensure you get the necessary permits before undertaking any possible conflict of outsourcing agreement. We need to review each individual contract, not just your “standard” contract, which is well within the rights of any customer to insert a clause. The breach of this agreement could lead to failure to pay with little chance of legal recovery.

You will notice that the three reasons given do not include what is generally regarded as a golden rule – to outsource support functions, but never the basic functions of your business. In general, this is true. But there are instances where outsourcing an essential task which proved to be a good idea. For example, a document called “Pasadena Now” in Pasadena, CA has hired two reporters in India to cover local news and events in Pasadena.

Wait, what?

It turns out this is a highly competitive market. And since California has very open public access laws, virtually all official documents, minutes of meetings, press releases, etc. can be normally found on the Internet. Editor James Macpherson said: “We do not believe that geographic distance between India and California are presented insurmountable problems and to work together with you will be in developing a thorough knowledge of the affairs of this city. This will result in accurate news reports and reliable.

And the savings from this action amazing? Well, we’re not sure how much is normally paid to journalists, but they hired these two $ 20,800 a year. Combined.

When does this make financial sense, therefore, can not blame the company to do? Maybe not. But if you’re an unemployed journalist from Pasadena, CA, you may have a different opinion.