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Outsourcing Pros And Cons




Outsourcing has become extremely popular among businesses in the US for a number of reasons – not 
least of which is cost.  This document  is going to walk you through some of the outsourcing pros and 
cons, and also give you a couple tips and resources for getting the job done effectively! 

Outsourcing  originally  emerged  as  a  way  for  businesses  to  cut  costs  by  having  work  done  overseas  at 
quite a low cost.  Originally, work included a lot of manual labor, assembly and manufacturing.  Lower 
wages  and  overall  lower  expenses  contributed  to  these  reduced  costs.  Bottom  line,  the  lower  costs 
greatly improved the profit margins for companies.  

Now,  outsourcing  is  gain  momentum  for  other  reasons.    While  cost  reduction  is  still  a  primary 
advantage, other elements such as access to worldwide industry experts, a bigger workforce and more 
flexible options are being embraced as welcomed advantages offered by outsourcing. 

There are a lot of outsourcing pros and cons – but I’ll keep this as brief as possible… 

Cost Reductions from Outsourcing 
As previously mentioned, cost reduction was the original purpose of outsourcing.  And although it has 
since  been  demonstrated  to  have  other  huge  advantages,  lowering  costs  is  still  a  big  driving  force. 
Companies and businesses look to outsource tasks which would be more costly to complete in‐house. 

For  instance,  my  friend,  John  Jonas  has  put  together  a  site  called  ReplaceMyself  where  he  walks  you 
through finding highly qualified outsourcers in the Philippines for about $250 a month.  I have to vouch 
for the level of work they do!  It’s phenomenal. 

 

 
What Projects Can You Outsource? 
When  I  first  got  into  outsourcing,  it  took  me  a  while  before  I  was  comfortable  with  the  idea  of 
outsourcing  some  of  my  more  crucial  business  processes.    What  I  had  to  do  was  keep  a  spreadsheet 
open on my computer with a list of tasks that sucked up a lot of my day and then hand them off to my 
new team. 

Examples of these types of tasks would be a virtual assistants, Twitter developers, and graphic design; of 
which oDesk is a great place to look.  oDesk has this amazing feature where you can actually look in on 
your team members as they’re working throughout the day to monitor their progress or make sure that 
they’re doing what they’re supposed to! 

 

 

Access To Industry Experts 
One  reason  I  personally  outsource  a  lot  of  my  company’s  work  is  so  that  we  can  have  access  to  an 
industry expert on a contractual basis for much less money that if we were billed in the United States.  
Usually, this work lies in the realm of software, Internet marketing, search engine optimization or pay 
per  click  marketing.    The  efficiency  of  an  outsourced  expert  will  enable  him/her  to  complete  the  task 
much more quickly than it could have been done in‐house.  

If the task were not outsourced, on‐premise employee would have had to complete the project and may 
have taken significantly longer; costing the company more in the long run.  

On Call Experts 
We  just  got  done  discussing  how  industry  experts,  no  matter  where  they  were  located,  can  make  an 
incredible impact in your business.  Another crucial question when talking about outsourcing pros and 
cons is to ask what new opportunities an outsourced worker can provide the company. 

I love hiring an outsourced team member, training them, and then seeing what they’re capable of.  They 
have incredible life experience that we simply don’t have here in the United States. 

With experts as part of your team, the company is able to go after larger and more specialized types of 
work.  This  is  important  because  in  doing  this  the  company  can  find  themselves  enjoying  much  more 
success, much more frequently! 

A Larger Workforce 
Another outsourcing pro is the benefit of having a larger workforce without having to dig too deeply in 
the  company’s  coffers.  Outsourcing  companies  can  bring  in  additional  employees  on  a  contract  basis 
during busy times without worrying about what you’re going to have to do with them when the work 
runs out. This is particularly relevant in industries involved in peak seasons and off seasons.  

A con of having a larger workforce is organization.  Sometimes, it’s difficult to manage staff remotely, 
especially when there isn’t enough for them to do in the first place! 

More Resources 

For more information on outsourcing pros and cons and other outsourcing tips, visit our team 
training site. 

If you’d like to get a jump start on finding an outsourcer to join your team, take a look at my 
favorite two sites, Replace Myself and oDesk.  I use them both with great success…  

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Outsourcing Pros And Cons

  • 1. Outsourcing Pros And Cons Outsourcing has become extremely popular among businesses in the US for a number of reasons – not  least of which is cost.  This document  is going to walk you through some of the outsourcing pros and  cons, and also give you a couple tips and resources for getting the job done effectively!  Outsourcing  originally  emerged  as  a  way  for  businesses  to  cut  costs  by  having  work  done  overseas  at  quite a low cost.  Originally, work included a lot of manual labor, assembly and manufacturing.  Lower  wages  and  overall  lower  expenses  contributed  to  these  reduced  costs.  Bottom  line,  the  lower  costs  greatly improved the profit margins for companies.   Now,  outsourcing  is  gain  momentum  for  other  reasons.    While  cost  reduction  is  still  a  primary  advantage, other elements such as access to worldwide industry experts, a bigger workforce and more  flexible options are being embraced as welcomed advantages offered by outsourcing.  There are a lot of outsourcing pros and cons – but I’ll keep this as brief as possible…  Cost Reductions from Outsourcing  As previously mentioned, cost reduction was the original purpose of outsourcing.  And although it has  since  been  demonstrated  to  have  other  huge  advantages,  lowering  costs  is  still  a  big  driving  force.  Companies and businesses look to outsource tasks which would be more costly to complete in‐house.  For  instance,  my  friend,  John  Jonas  has  put  together  a  site  called  ReplaceMyself  where  he  walks  you  through finding highly qualified outsourcers in the Philippines for about $250 a month.  I have to vouch  for the level of work they do!  It’s phenomenal.     
  • 2. What Projects Can You Outsource?  When  I  first  got  into  outsourcing,  it  took  me  a  while  before  I  was  comfortable  with  the  idea  of  outsourcing  some  of  my  more  crucial  business  processes.    What  I  had  to  do  was  keep  a  spreadsheet  open on my computer with a list of tasks that sucked up a lot of my day and then hand them off to my  new team.  Examples of these types of tasks would be a virtual assistants, Twitter developers, and graphic design; of  which oDesk is a great place to look.  oDesk has this amazing feature where you can actually look in on  your team members as they’re working throughout the day to monitor their progress or make sure that  they’re doing what they’re supposed to!      Access To Industry Experts  One  reason  I  personally  outsource  a  lot  of  my  company’s  work  is  so  that  we  can  have  access  to  an  industry expert on a contractual basis for much less money that if we were billed in the United States.   Usually, this work lies in the realm of software, Internet marketing, search engine optimization or pay  per  click  marketing.    The  efficiency  of  an  outsourced  expert  will  enable  him/her  to  complete  the  task  much more quickly than it could have been done in‐house.   If the task were not outsourced, on‐premise employee would have had to complete the project and may  have taken significantly longer; costing the company more in the long run.   On Call Experts  We  just  got  done  discussing  how  industry  experts,  no  matter  where  they  were  located,  can  make  an  incredible impact in your business.  Another crucial question when talking about outsourcing pros and  cons is to ask what new opportunities an outsourced worker can provide the company.  I love hiring an outsourced team member, training them, and then seeing what they’re capable of.  They  have incredible life experience that we simply don’t have here in the United States.  With experts as part of your team, the company is able to go after larger and more specialized types of  work.  This  is  important  because  in  doing  this  the  company  can  find  themselves  enjoying  much  more  success, much more frequently!  A Larger Workforce  Another outsourcing pro is the benefit of having a larger workforce without having to dig too deeply in  the  company’s  coffers.  Outsourcing  companies  can  bring  in  additional  employees  on  a  contract  basis 
  • 3. during busy times without worrying about what you’re going to have to do with them when the work  runs out. This is particularly relevant in industries involved in peak seasons and off seasons.   A con of having a larger workforce is organization.  Sometimes, it’s difficult to manage staff remotely,  especially when there isn’t enough for them to do in the first place!  More Resources  For more information on outsourcing pros and cons and other outsourcing tips, visit our team  training site.  If you’d like to get a jump start on finding an outsourcer to join your team, take a look at my  favorite two sites, Replace Myself and oDesk.  I use them both with great success…