Obstacles to Outsourcing

The notion of importing manpower and services from other countries has been around since the commencement of international trade. Nevertheless, the substance of outsourcing as known today enables the global workforce to be integrated in various ways. However, there are some outsourcing barriers that we have to confront before we can regard it as suitable to our business.

The advantages of outsourcing are countered by several challenges. One significant element is the economic and political state of the country. Less developed countries have a high possibility to have unstable governments. Furthermore, the economic policies of these nations can switch from one political cycle to the next. Therefore, there is a degree of unpredictability that increases the risk for companies who are interested in outsourcing.

A further significant hindrance is the language gap. Because of this challenge, not many nations are eligible for outsourcing. Developing nations that are well-versed in English like the Philippines and India are perfect candidates. Companies should look for subcontractors that totally complies with the skill-set that they require.

Another outsourcing challenge is a country's existing infrastructure. This is composed of the telecommunications infrastructure, the legal system, and the banking system infrastructure which ensures financial stability. Without a highly-developed infrastructure, the cost of subcontracting and the risks that are part of this kind of investment can be larger than predicted.

Once the major challenges are deliberated, enterprises will need it handle other outsourcing obstacles for instance, training, ability to integrate operations, knowledge transfer, and cultural gaps. Collaborating with offshore partners requires companies to adapt to their local operation in order to be compatible with them.

Beyond all of these, there are dynamic challenges that we need to consider. This includes management challenges, security risks, time-zone, human resource management, and more.

Not everyone is capable to outsource. There are specific situations when outsourcing challenges outweigh the advantages. In conclusion, you have to think whether outsourcing is beneficial for your business or not.