In a previous blog, we have described the term “outsourcing” and some benefits of outsourcing. But, it does not mean that there are no drawbacks. There are some disadvantages of IT Outsourcing. These blogs are beneficial for small and medium-sized business owners as they need to have enough information before connecting with Outsourcing Company. If you have previously tried outsourcing for any of your departments, then you can also relate to the possibilities we have presented here. You are also welcome to share your experiences to inform others who are planning to hire third-party services.
Here are some disadvantages of outsourcing you should keep in mind before signing the contract.
Outsourcing is one of the significant decisions that can either make or break your business. So, it is essential to be extra attentive while taking such a decision. It is risky to have 100% reliance on an outsourcing company. There are innumerable companies that claim to be the best, so it’s up to you to select the genuine and professional one. You would be able to take the best decision after reading the next blog where will be suggesting some tips to select a proficient Outsourcing Company. Before that, however, you must read the advantages and disadvantages of Outsourcing and ensure whether you need to outsource.
- Lesser control
Every business owner or project manager has some idea of what kind of work he wants from the outsourcing company or freelancer. But these third parties might also have a different approach for the same project. You need to allow them freedom and that’s the reason you lose control over your project. Though you can review the status report, and ask them to make certain modifications, you don’t have the total control of the project.
- Hidden charges
You should ask regarding the cost structure. Most companies demand extra charges after the deal. They might enlist some costs during the payment. Read the contract again and again if there are uncertainties. Also, you should not overlook the money and resources spent on the search, meetings, preparing the legal documents, etc. It also is a part of the initial investment.
- Divided attention
The freelancer or the outsourcing firm performs multiple tasks. They might not prioritize the project. Your project is utmost important to you. But for them, it is just a task they have to accomplish. You might want it to be outstanding, but they want it to be approved. That is the reason they would not try something creative but complete their task.
- Privacy threats
You might need to outsource a department that requires personal information about you, your business, or that of your customers. Customers share their critical data with you because they have faith in you. You can’t break their faith by sharing their information with anyone who might misuse it. So, outsourcing is always a threat when you are working with a new company
You would never have the exact information about your project. The company would never share the exact status of whether they have finished the project. You will have to wait, wait, and wait before receiving the final product. Still, there is no assurance that it is perfect. It is not possible to deliver the quality work at the first attempt. You will have to send it back for corrections. It would more time than the promised delivery time.
- Lack of expertise
This is the first time you are working with them. You are not sure whether the outsourcing company is capable of doing your work. You don’t know whether they have enough skill set and expertise.
You might have understood that it is easy to avoid the negative aspects. But, you cannot overlook the need for outsourcing. The best thing you can do is to select an experienced outsourcing company. You should not trust them in the first meeting and talk to them until your doubts are cleared.
With Mag Studios, however, you don’t need to worry about the drawbacks. Mag Studios is a 14+ years old company. We have a team of expert developers and software engineers. All of them are proficient in handling multiple projects simultaneously. We have deployed more than 450 projects so far. You can read our portfolio to learn more about our experience and work approach. You are also welcome to connect with us if you need assistance with software development, website development, mobile app development, and digital marketing. Send an email at firstname.lastname@example.org to know more about our services and charges.