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Pros and Cons of Outsourcing Web Services

By Lan Lurie Subscribe to RSS | February 29th 2012 | Views:

Outsourcing refers to the process, where a business contracts with an outside entity to provide services that might be performed by in-house employees. Typically, small businesses outsource their services, mainly their non-core activities of business. There are many advantages that are associated to outsourcing. However, besides its advantages, there are also some disadvantages of outsourcing. In the following article, we will discuss both the pros and cons of outsourcing web services.

Following are the pros of outsourcing:

Cost Saving: One of the benefits achieved by outsourcing work to outside entities is overall cost saving. The costs associated with in-house employees are always higher than the cost of an outsourcing company. Most of the outsourcing companies have their employees based in countries where labor cost is low. This helps the outsourcing companies to offer services on quite low costs. By outsourcing web services to outsourcing companies, businesses save their costs that would be otherwise spend on in house employees.

Increased efficiency: It is known fact that bulk actions are never accomplished with the help of limited hands. To do all kinds of tasks like research, data entry, web development, designing and marketing with in the company, the owners need to hire professional experts and various other employers, which costs extremely high. If they keep the budget low then inferior quality outcome is generated. However, all these kinds of tasks can be easily accomplished with high quality work and increased efficiency, if the tasks are outsourced.

Focus on business essentials: To keep a keen eye on business’s core activities, full attention is required with seamless back office operations. It is a major difficulty for small and expanding businesses that they lack behind due to back-office expenditures and other overheads. Due to improper back-office operations, they become inefficient and their core activities and business essentials are affected. By outsourcing their back office operations, the companies can easily focus on their business essentials and prosper.

Access to specialized skills: to get high quality web designing and developing services, companies have to hire high profile employees that are very expensive. Outsourcing web design or developing services would cost companies very affordable and in return, they get specialized skills.

Staffing issue: By outsourcing non-core activities, the companies avoid all the headaches of recruiting and firing employees after short periods.

Risk management: with in house employees, the company is always at risk. If any higher management quits, the company starts to dwell in risk while future developments are stopped. With outsourcing companies, all these risks are removed.

Now we will discuss some disadvantages of outsourcing

Linguistic Barrier: One of the biggest disadvantages of dealing with outsourcing company is that when the call handling or similar tasks are outsourced to a foreign company and the first language of that country is not English. The companies based in countries with English as a second language leads to low quality call handling.

Social Responsibility: When a company outsources its operations to a company based in foreign country, it reduces the chances of employment to people in the country. This goes against the social responsibility of the owner or company.

Loss of Data: By outsourcing web services to outside entity, the business deliberately put itself into the chances of loss of confidential data. However, the outsourcing companies are professionals and generally do not steal the clients data. Still the companies are vulnerable to data theft.

Company knowledge: In-house employees have greater knowledge about the company than the IT outsourcing company. In house employees work and sit in the company and understands the actual situation of the company while equally understanding what the owner needs. On the other hand, the outsourcing company or its employees are totally negligent about the actual needs of the owner.


We have discussed both the pros and cons of outsourcing and can conclude that the cons of outsourcing are not as prominent as the pros are. Let us now give the other side of the story about cons of outsourcing. There are many outsourcing companies whose first language is not English but they have hired professionals who have good speaking skills. It is true that its against the social responsibility to hire foreign companies but greater profit earned through that outsourcing companies is again ploughed into the economy. Generally, companies outsource their non-core services, which have no link to the confidential data of the company. Although it is true that in-house employees has greater knowledge, but same kind of knowledge can also be gained by outsourcing companies by simply understanding better.

Lan Lurie - About Author:
Information technology field has a large scale canvas. It is not really easy to grasp all topics, provide up to date information and stay one step ahead. Being a professional writer, it is my passion to explore and share my thoughts about IT sector, services and achievements. I would appreciate any feedback or factual statements to enhance knowledge base.
IT Business Process Outsourcing

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