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Thread: Is outsourcing riskier?

  1. #11
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    Default Re: Is outsourcing riskier?

    Quote Originally Posted by Fuzyon View Post
    A lot of outsourcers have an idea in mind about the best locations for outsourcing, so if there are any regulatory or law issues then it's probably not worth outsourcing in that area. A lot of the big countries like China or India have outsourcing accomodation.
    Agreed. I think some countries who specialize in outsourcing will most likely make themselves more and more accessible to those who wish to try it out so the risk probably is lessened exponentially once that niche is found by the country and the government does something to back it up. Because of this most of the risk tends to be eliminated after a few years of molding the regulations and systems.

  2. #12
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    Default Re: Is outsourcing riskier?

    I'd say it's only risky in the beginning when you don't know how to find people that can easily do the job effectively. You really gotta know how to find the right people...sometimes theyre cheaper than the ones that say theyre amazing, it's all about individual ability and not really the outsourcing process itself.

  3. #13
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    Default Re: Is outsourcing riskier?

    There will always be risks associated with outsourcing. The number one reason why businesses outsource is that it can be much cheaper. But if you decide to outsource, you have to be willing to take risks. For instance, the services of the offshore company you hire may not be up to par with what you expect. In a nutshell, outsourcing overseas is similar to gambling. There's a lot of luck involved.

  4. #14
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    Default Re: Is outsourcing riskier?

    Basically when it comes to outsourcing, the question is do you trust somebody else to do something instead of doing it yourself, so a lot will come down to how much you trust the other company you employ to do the work for you. If parts of your trade you can't do yourself, then you obviously have no choice but to outsource so you have to make sure that your using a reputable company, but in an ideal world, if possible, I prefer to do everything in-house because at least then you know that the work will be done to the standards that you set. Trusting another company to do part of a process to the same high standards you have is often hit and miss, and it can cause more problems than what it solves.

  5. #15
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    Default Re: Is outsourcing riskier?

    I would not say it is riskier, at least not categorically as it can depend on the industry being talked about and the nature of their business. I will say that it carries a different set of risks. What needs to be done is an honest assessment of the in-house risks, don't just assume it's safer. After that assess the risks of outsourcing and compare notes. You may be surprised

  6. #16
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    Default Re: Is outsourcing riskier?

    Quote Originally Posted by TheFunneler View Post
    I'd say it's only risky in the beginning when you don't know how to find people that can easily do the job effectively. You really gotta know how to find the right people...sometimes theyre cheaper than the ones that say theyre amazing, it's all about individual ability and not really the outsourcing process itself.
    Not only that but you also run the risk of getting your idea basically stolen and mass produced and sold for much cheaper, essentially making you the creator of your own competition. I've heard of stories like this where American businesses started outsourcing their production to China and a few months later they are seeing copies of their products under a different brand being sold online for much less.

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    Gold Member nytegeek's Avatar
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    Default Re: Is outsourcing riskier?

    Quote Originally Posted by Norm View Post
    Not only that but you also run the risk of getting your idea basically stolen and mass produced and sold for much cheaper, essentially making you the creator of your own competition. I've heard of stories like this where American businesses started outsourcing their production to China and a few months later they are seeing copies of their products under a different brand being sold online for much less.
    You run the exact same risk with an internal team. You must select outsourcing partners with the same careful consideration you would use to choose employess and non=compete agreements need to be signed and used.

  8. #18
    Diamond Member Corzhens's Avatar
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    Default Re: Is outsourcing riskier?

    Quote Originally Posted by Norm View Post
    Not only that but you also run the risk of getting your idea basically stolen and mass produced and sold for much cheaper, essentially making you the creator of your own competition. I've heard of stories like this where American businesses started outsourcing their production to China and a few months later they are seeing copies of their products under a different brand being sold online for much less.
    This may be a segue but I can relate to that idea being stolen. When the supervisor of our computer supplies retailing business resigned, we have no idea that she would go to the competitor and snatch our major clients. Aside from that, they also used our method of prospecting that my husband had invented. That is a neat lesson to us.

    But in outsourcing, maybe the outsourced company or employees wouldn't do the unethical of copying systems and methods much more the products because that's a crime as per the copyright law as protected by the WIPO (world intellectual property office).

  9. #19
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    Default Re: Is outsourcing riskier?

    I believe it is, especially if you have to deal with a lot of transportation. You risk so much when you don't limit transportation. For example, if you have a business that sells fruits, people can't get their fruits if there is always some delay in transportation. Why not have something like that ship locally.

    I guess it all comes down to what type of service your offering, like an internet connection isn't really a big deal as far as transport. All that takes is connections and data never really has problems meeting transport times. Produce is different, just like shopping online for clothes and shoes, or accessories, etc.

  10. #20
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    Default Re: Is outsourcing riskier?

    Quote Originally Posted by hades_leae View Post
    I believe it is, especially if you have to deal with a lot of transportation. You risk so much when you don't limit transportation. For example, if you have a business that sells fruits, people can't get their fruits if there is always some delay in transportation. Why not have something like that ship locally.

    I guess it all comes down to what type of service your offering, like an internet connection isn't really a big deal as far as transport. All that takes is connections and data never really has problems meeting transport times. Produce is different, just like shopping online for clothes and shoes, or accessories, etc.
    Out sourcing internet services and or IT services presents just as much risk as anything else. You clearly don't know what you are talking about, especially in regards to technology.

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