Disadvantages of Outsourcing: What You Must Know, Part 2


by Linda P. Morton

Thinking about using outsourcing in your business? Then you need to know the disadvantages of outsourcing as well as the advantages. This two-part article concentrates on the disadvantages. Three were covered in Part 1. Four more are covered in Part 2.

Disadvantages of Outsourcing 4: Outsourcing Often Leaves You Without Follow-up Support

After you pay vendors, they no longer check communications from your job. So if you run into a problem, you have no other way of getting in touch with the vendors. Some services will allow you to email vendors directly through the outsource service site, but others won’t.

Either way, it’s difficult to get prompt follow-up service if you can get it at all.

Disadvantages of Outsourcing 5: Proprietary Information And Site Security May Be Abused

The laws in many countries don’t honor copyright laws and intellectual property as the USA does. So a dishonest outsource vendor can collect payment from you to produce a product using your information and then sell your product to others.

Another risk is involved if an outsource vendor accesses your site administration. This often is necessary to install a script or a program. But be careful in allowing it because the vendor can damage your site.

This is a greater risk if the vendor gets angry with you because you had to cancel the contract. Once a vendor has your code, you don’t know what destruction will result from that anger.

Disadvantages of Outsourcing 6: Relying On Outsourcing May Keep You From Developing Skills That You Need

When you depend on outsource vendors to perform tasks that are vital to your business success, you run the risk of becoming dependent on external people. They may not necessarily have the best interest of your business as a priority.

Disadvantages of Outsourcing 7: It’s Difficult To Build Long-Term Working Relations With Good Outsource Vendors

Because of the nature of the outsource business, you may find a good outsource vendor, but not be able to hire the vendor again.

You may specify that you want the vendor to bid on another job. But if the vendor has a full work schedule, he won’t be able to fit your job in. So you’ll have to select another vendor or delay your job until the vendor is free.

Disadvantages of Outsourcing: Conclusion

Outsourcing has its advantages, and many people advise new Internet marketers to use outsource services, especially for skills that they don’t have or for jobs that they don’t like to do.

You should give outsourcing decisions the same due consideration that you would give to hiring a new employee.

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