Outsourcing Pros and Cons | Overview

Outsourcing — whereby a task or position in a company is performed by someone remotely — has become increasingly popular in a variety of fields. However, there are outsourcing pros and cons, depending on the nature of the work.

Pros: The internet makes sending videos, texts, and other materials that require transcription effortless. Professional transcribers, who generally work individually even when employed at firms, can complete the transcription from anywhere and send the finished product back without any delays or hardships.

Cons: If a transcriber does not have a quiet environment in which to work and focus, the transcription can either be incomplete, poorly done, or feature bizarre word interpretations.

Pros: Because the global nature of the internet allows interested parties to find qualified writers on any topic almost instantaneously, work on even the most obscure topics can be completed virtually overnight. Writers are able to share their expertise while setting their own schedules.

Cons: Occasionally, miscommunication arises between the writer and the agent, leading to texts that do not communicate the message the agent wishes to convey. This is usually a result of unclear direction on the part of the agent, or a misconstrued version of the direction on the part of the writer.

Pros: The employer can save a great deal of money in personal benefits and rental space costs by outsourcing data entry. Experienced data entry firms can rapidly input reams of specialized data in significantly less time than it would take for a group of inexperienced typists.

Cons: Outsourced data entry can lead to greater rates of error, due mainly to a lack of interest and a feeling of isolation by those entering the data. Without direct human contact, those performing a task generally do not invest themselves fully in their work, especially if the work is dull or tedious.

Pros: Accounting, payroll, and other financial services are often best outsourced, simply because those performing the financial services have no bias toward the outcome. In-house payroll, for example, must be carried out by a trusted individual who will not embezzle from the company. However, these individuals are rare, and can cripple a company if they decide to leave. By outsourcing these tasks to a reputable financial firm, a company saves itself considerable effort in the areas of hiring, trustworthiness, and retention.

Cons: The lack of bias on the part of those providing financial services can occasionally be a drawback, especially during rough economic times when a company has very little money for expenses. Financial service companies have no compunction in withholding services if they are not promptly compensated, which for small businesses with seasonal cash flow fluctuations can be potentially disastrous.