Is Outsourcing A Good Solution?

Outsource, a popular term in the business segment in recent years, usually appears in the case when a company does not have enough internal human resources to meet its needs and goals. So what exactly is Outsource? What are the pros & cons of Outsourcing?

What is Outsource?

For the economic or business industry, Outsource is a term used to refer to the hiring activities of the business. To be more specific, this is an activity where a company hires external resources to perform its works and functions, instead of using its own internal resources.


In fact, outsourcing activities (Outsource) have been developed for a long time, especially in business enterprises. The trend of Outsourcing is also growing and developing to meet the needs of the market. 

Outsource is an effective solution to help businesses solve the shortage of human resources, with an attempt to meet and fulfill business goals. Thanks to outsourcing activities, many companies can increase labor productivity, reduce investment costs in human resources and create competitive advantages for businesses in the market.

Pros of Outsource

Outsourcing is a helpful service that brings many practical benefits to the company. Those benefits can be listed as follows:

1. Ensure high working efficiency

Outsource companies usually have a team of specialized human resources. They are well trained for each area they take responsibility for. Therefore, every job is completed smoothly, bringing high working efficiency.

As a consequence, the use of Outsource is highly appreciated by businesses today. Outsourcing service providers have the power to utilize the capability of human resources, to complete the work received. When the maximum use of human resources is reached, the labor efficiency is also much higher. Finally, the working process also has a very strict monitoring system to ensure the quality of work.

2. Cost Saving

Using Outsourcing services will help businesses save significant costs. Most outsourced parties provide low-priced services. The outsourcing payment is much lower than the fee for the construction of the human resource structure in the company. Not to mention, the company also has to pay personal income tax, health insurance premiums, and social insurance premiums for official human resources. As such, outsourcing can save firms a fortune for those above costs

3. Time-saving

Training for internal human resources is time-consuming and takes much effort. For employees, advancing in workability requires many processes such as acquiring information, practicing, receiving feedback, etc., which can last for a long time. 

Training employees is time-consuming and takes much effort

Therefore, using outsourcing labor is a suitable option to save more time. Finally, outsourcing services provide specialized employees and equipment to ensure that the assigned tasks are completed on schedule.

 Cons of Outsource

1. Leaking confidential information to the outside

For every business, security is an important issue. It determines the survival of the company. Therefore, when using outsourced services, it is likely that the company’s confidential information will be disclosed to the outside by outsourcing employees.

Leaking information to the outside

2. Delayed completion of work

When receiving the project, the outsourced staves will have things that can not be fully understood. Therefore, they often need a certain amount of time to get used to it. This can cause the delay of the project.

Furthermore, if the project is unfortunately not up to the requirement, it will cause great damage to the company and its reputation.