Advantages and Disadvantage of Outsourcing to India

What is Outsourcing?

Outsourcing is obtaining services from outside businesses, suppliers or manufacturers. Many businesses choose to outsource their internet requirements in terms of website, software, IT, virtual assistance and content. Outsourcing has its many advantages .. and just as many disadvantages. There are opposing thought if the advantages outweigh the disadvantages of outsourcing, especially when it comes to the Indian service labor force.

What are the Advantages of Outsourcing?

Outsourcing has many advantages. Saving money with outsourcing is on top of the list. Why outsource to India? India can claim its leadership when it comes to outsourcing, especially internationally. India workers are outranking their peers around the globe with computer programming, internet communicating, and computer technology. They are well-informed and experienced regarding technology, mathematics and science.  Global financial benefits are very appealing to many India workers who are poorly paid for their expertise.

Western nations have vast technical requirements and needs for their businesses, products and services. India has the knowhow to solve these challenges. Americans and other western world nations receive excellent service at a discount and India workers have the opportunity to improve and increase their financial rewards.

What are the Disadvantages of Outsourcing?

Outsourcing has its weaknesses as well, and it could be more risky to outsource internationally, than locally. One of the greatest disadvantages of outsourcing to India, is there is no guarantee that the company will be in business long enough to finish the project.  Culture differs from country to country and from people to people. Keep the cultural differences in mind when outsourcing to India or any other country. Consider the possible obstacles that could present with outsourcing.

One such obstacle could be misunderstanding caused by cultural, and language differences.  This can lead to damaging business relationship that sometimes is difficult to mend. If you are aware of possible misunderstandings, you will be more prepared and mending wounded relationships would be easier. The difference in time zones should always be taken into account when outsourcing internationally.  Piracy and content theft can be another disadvantage when outsourcing to India.

What about Scams?

A standard policy and procedure should be to ensure the business you are outsourcing to, is authentic. It could take longer to check the validity of the business than the actual project would have taken.  However it is a good safety measure to make sure you are working with a valid business.

Intellectual Property laws of India unfortunately are not up to required standards. Although you are outsourcing to a leader in the field, you are also putting the privacy and security of your confidential information and trademarks at risk. You save money outsourcing to India, but you can lose a lot with lack of privacy and security. Do the two, risk and advantages, cancel each other out?

How to Secure and Protect?

Outsourcing to India does not give you the certainty of working with an honest and morally based business. Is India the exception to the rule? No, anywhere in the world actions of business people are not always just and honest. Locally there is a certain amount of protection and ability to find the unlawful person. When you do business internationally, it becomes difficult and sometimes near impossible.

Hackers are a risk all over the world. However, with outsourcing, certain type of access is given to the business’ computer network, which could be very tempting to hackers. This could be disastrous to a new business that decided on saving some money by outsourcing.

How to Safely Outsource?

Put security in place and insist the India business complies with these safety measures. Ensure the business understands and complies with the laws of intellectual property. Spend the time to investigate the authentication of the company. It would be ideal to visit the business in India and have a face-to-face meeting with the relevant parties involved.

Outsourcing can be extremely advantages to both parties but it could also be disadvantageous. A little research, and all obstacles and disadvantages could be addressed beforehand. Scamming is ruled out, and a new business relationship is formed.

So .. Do I, or Don’t I Outsource to India?

I have to admit, I find “justifying” my rate a tad tedious. I usually end up telling a potential client (or an existing one who balks at the price they agreed upon) something like:

“Yes, you can pay $2-3/hour to another service provider. Your ‘assigned’ VA (assuming you get a dedicated VA) may, or may not, be around in a week, or a month. They may, or may not, provide you with unsatisfactory work. They may be working in the middle of their nighttime, which affects their work-life balance. Bottom line – you know where I am, when I am working, and what I can do. I would think your peace of mind is worth more than $3/hour.”

About Out of the Office Virtual Assistance:

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Image credit: Public Transport by Ahmed Mahin Fayaz | CC BY 2.0