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Outsourcing- The Pros and Cons

Published: Feb 8th, 2018

Outsourcing- The Pros and Cons

According to recent survey, outsourcing is a sector that will never go out of business or lose popularity! An article published by Deloitte, states that 31% of IT services have been outsourced in 2017 and will continue to grow in future. Same is said for the healthcare sector and finance sector. They have seen individual growth of 36% and 30% respectively. With India leading the outsourcing forum closely followed by China and Thailand, these services have been a major life sustaining venture.

In today’s blog, we will focus on the Pros and Cons of Outsourcing and how it affects the efficient working of a business.


  • Outsourcing can be a boon if utilized properly. It can help in better revenue investment and magnified returns on investment.

  • When you outsource your requirement to a third party, the cost of manpower and hiring goes down considerably and increases realization of economic development.

  • Exposure to a wide knowledge base for better innovation and creative inputs.

  • On outsourcing, you are free from overlooking every detail of the project, which enables you to focus on core competencies while not being concerned about daily outsourcing activities.

  • On time delivery of project and top notch quality is the core components in the efficient working of an outsourcing agency.

  • Reduction in cash outflow is the major attraction being provided by an outsourcing service provider. With optimizes resource utilization, many businesses are using these services to their benefit.

One of the major factors that decide the outcome of a drive is risk-analysis. Outsourcing your business process helps the organization to re-organize certain decision-making to the outsourced service provider. Since the outsourced vendor is an expert, they plan your risk-mitigating factors better.


  • Though the pros may lead the race, but we need to know the other side of the coin too before making the decision to invest in an outsourcing partner. The major reason that businesses hesitate in outsourcing their needs are the fear of loss of control over the company's business processes.

  • The fear of sharing data which can be misused if fallen into the wrong hands is also a cause of worry among businesses that wish to outsource.

  • Other problems that the end customer may face can be due to sluggish response times coupled with slow resolutions due to differences like time zones and natural or man-made causes.

  • Some outsourcing service providers have not been able to keep up with the customer expectations and delivered lower that desired results in the past, due to which a general word of mouth warning has been spread among other businesses not to outsource.

  • Issues related to lingual accent variation can also be an inconvenience when it comes to outsourcing.

Although outsourcing is cost-effective, sometimes the hidden costs involved while signing a contract across international borders may pose a major issue and cause many businesses to backtrack on their outsourcing needs.

Key Takeaway: Outsourcing your project gives your businesses an unmatched flexibility in manpower management, staffing while helping you save costs. By doing so, a business can be successful, ready for the market challenges and have an efficient cash flow. With Dataworks, you get the best-in-class team of experts that assist with your outsourcing needs, may it be back end support or transcription services. Connect with us today or take our free trails to see for yourself.


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