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Are you considering outsourcing? Article Management

The trend of outsourcing services is on the rise. For small and medium-sized businesses, due to efforts to reduce costs, this is often necessary, and at the same time the situation in the labor market also makes a difference. The use of external elements has many undeniable advantages, but it is necessary to take into account some disadvantages and prepare in advance for problems that may arise due to outsourcing.

Most companies see the main advantage of outsourcing in saving costs, people and operational capabilities, or in the ability to focus on their core business. “Outsourcing services often mean an opportunity for a company to get itSummary 3 To the latest trends and technological innovations, which they themselves are unable to implement, whether due to insufficient knowledge, limited financial resources or lack of personnel. Meanwhile, outsourcing services save management time and energy. “ Says Jerry Gemilka, Director of JIP Enterprises that provides activation and interim management for small and medium-sized enterprises. So outsourcing has many benefits. But what about the imperfections?

1) A “foreign” person in the company

One of the most dangerous risks that can affect a company when outsourcing work is the potential leakage of sensitive data or theft of specific intellectual property or technical knowledge. “It is therefore crucial to ensure that outside experts only have access to the information and materials they need for their agreed work. This must also be accompanied by, for example, security training, for example on movement in corporate networks. Of course, there must be a contractual obligation. With regard to the confidentiality of information and its protection, which ensures that the company imposes possible penalties. Jiří Jemelka supplies.

2) They don’t have to be in the same wavelength

It goes without saying that for an outsourcing business to work, it is imperative to find a reliable, high quality external agency. Good references, reasonable prices, guarantees and reliable contract security – all of this should be carefully considered by the company. However, there is another area that companies should focus on when choosing an outside agency: sharing values. Simply put, an outside agency should ideally “sit” with the customer for value. Or at least she should be able to at least adequately respect them and highlight them in the work done. Otherwise, there is a risk that the work will not be done with the highest possible quality, or that, so to speak, it will not “meet” company standards or principles.

3) It is easier to cough on you

When outsourcing services, the relationship between the company and the outside experts is based on a customer-supplier, not employer-employee basis, which carries with it its own flaws. Although it can be addressed in detail contractually, it is nevertheless necessary to bear in mind that the level of loyalty may not be as high for service suppliers as it is for internal employees. This often makes it easier to end collaboration for outside experts.

4) You lose control of some business operations

Of course, the problem with outside vendors is that you have no control over how they operate. Do they adhere to the agreed upon working hours? Do they respect the specified procedures? Are they not processing the matter, for example, in a hurry right before the deadline? Monitoring through different apps or software is possible, but it means an additional investment and one of the in-house employees who will take it.

5) The risk of delay

Companies should also bear in mind that while outsourcing can save them a lot of money, they don’t have to pay for time. The actual negotiation of cooperation and contractual security will require a certain period of time, but even when orders have been delivered, it is necessary to take into account delays, for example due to ambiguity in the assignment or other misunderstandings during communication. “When performing the task internally, it is always possible to go through the building and agree with colleagues or superiors immediately and any modifications can be resolved immediately. All this is difficult for strangers.” Jerry Gemilka points out.

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