Outsourcing (meaning hiring people who do not work directly at the company to do specific tasks) seems to be becoming a solution chosen by many companies. However, outsourcing is not simple, especially when your company is just starting out.

First of all, you need to decide where your outsourcing needs to take place. There are many options. But the most important is the issue of geography. Do you want to outsource locally, domestically, or internationally?

EDUTO find that outsourcing, in any scope, always has its pros and cons.

Internationally

In most people’s minds, they often imagine Southeast Asian programmers doing their work at night, as a side hustle. In reality, outsourcing globally is a more complex and expensive process than we often think.

Yes

Good prices are the number one reason most companies outsource internationally. Time differences can also be a factor: you can send requests at the end of your workday, and get results the next morning.

Loss

The saying "you get what you pay for" still holds true in this case. The most difficult part is having to manage and direct thousands of people thousands of miles away, you have to pay some additional fees related to management, ensuring contract performance. In addition, differences in language, culture and living space are also a barrier, it can lead to different ways of thinking and solving problems.

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At national level

Outsourcing in the IT sector in the US started with sourcing or mobilizing resources from rural areas. It may have been an attempt to keep jobs in the US. Sometimes it stemmed from dissatisfaction with the quality of labor abroad.

The International Association of Software Outsourcing Professionals found that the use of local resources was a prominent trend in 2012. Some of the jobs in Silicon Valley can be done by high-quality human resources in areas such as Georgia, North Carolina and Arkansas. In addition, "second- or third-tier" human resources in most cities across the country are also an option for many outsourced jobs.

Benefits

No language and cultural barriers, communication and cooperation with American workers are always easy and convenient. Differences in labor costs between localities can be an opportunity for companies to choose human resources with the lowest cost.

Loss

Compared to other countries, in the US you will have to pay more for a service or product. Outsourcing domestically may require you to spend more attention, money and time. Sometimes, you also encounter problems when your domestic partner divides your contract and hires people in other countries to do it. Of course, if they still ensure the quality as they do, everything is fine, but when any problem occurs during the implementation process or the quality of the service or product is not as committed, you are the one who is most affected.

More: Can IT outsourcing industry “riding the wave” of AI?

At local level              

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Good

The biggest advantage you get from outsourcing locally is the time savings. If you work with companies in other locations or countries, you have to use email or hold online meetings to communicate, which is often time-consuming and less effective than being able to physically go, meet and communicate with specific people when you work with local companies. Another advantage of this is that at the end of this cooperation process, a good partner can become a good employee.

Disadvantages

Using local labor will eliminate the advantage of cheap labor. In addition, some or all of your outsourced work may be performed by a partner hiring labor from another country.

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How you choose an IT Outsourcing suit for your business

From the 3 options given along with their pros and cons, which one you decide to go with depends on time, complexity and how you work.

Time to complete

How much time does the job you want to hire take to complete? If there are strict time requirements, you must choose a reliable partner who can ensure good progress.

Complexity

the complexity of the job is the basis for you to choose where to hire human resources. A complex job that requires professionalism cannot or is very difficult to do by non-professionals. If, for the purpose of reducing costs, you use human resources that are not suitable for the job requirements, you may not achieve this goal.

How you work

Do you find it necessary to meet in person or do you prefer to communicate online or over the phone when getting things done? Which way you work will determine your outsourcing options.