There is no doubt that outsourcing can help many businesses. But while outsourcing has been praised as one of the best business decisions you can make, there are implications that many entrepreneurs aren’t aware of.

Like everything else, there are pros and cons to outsourcing. Here are some of the things that you need to watch out for.


1: Higher Security Risk and Loose Confidentiality Conditions

When outsourcing, there is a higher risk of security breaches and confidentiality can easily be broken. This can lead to private information about a company’s employees being made public, proprietary information being released to competition, and making your business plans known to everyone.

You have to remember that many companies are overseas and are not bound to the same laws and regulations that are bound to your employees.

2: Legal Problems about Work Produced

One common problem that comes up frequently is copyright infringement. Many companies that outsource their work receive work that has been copied from another source.

This can be devastating to your business. It is easy for the copyright holders to win a lawsuit if the stolen work manages to pass through.

Even if it was them that stole somebody else’s work, you will end up paying for the consequences. Employees on the other hand understand how important it is to submit original work. They understand the consequences of stealing work from other sources and are just as liable as you are.

3: Quality of Product or Service Going down

One of the most recognizable downsides of outsourcing is the quality of the product or service going down. Many business owners assume that they’re going to receive the same quality of work when outsourcing, but that often doesn’t happen.

Sadly, it’s usually the customers that start to realize the quality has gone down. Having your own team of employees will allow you to maintain quality control and clearly state what is expected.

4: Lack Of Managerial Control

With outsourcing, you are letting to the ability to micromanage all the details. This can mean regulations not being followed, low productivity, and decrease in the quality of communication. One of the most observed examples is the use of sweatshops, which is a violation of human rights.

In-house employees will work under one company culture and understand the primary mission. They’ll
have access to an employment lawyer to ensure fair working rights. Employment solicitors can also be used to resolve conflicts between employees and employers.

Finally, in-house employees provide integration with the business, so communication will be clear and productivity will be higher than it is in outsourced companies.