Niyamath Parveez

Although money is likely to remain the key issue for a whole host of firms, when it comes to outsourcing, it is not the only reason. It is far too simplistic to say that money rules every decision made by companies so firms should be wary of their motives for outsourcing. Other aspects such as quality, workmanship, reputation and even staff happiness can factor in a firms decision making process.

Although the threat of outsourcing can make people unhappy as their jobs could be on the line, it is a positive aspect for many staff members. Many employees, especially those in smaller sized firm, may find they have to do all manner of tasks. These jobs may not be within the remit of their job description but when everyone is working hard, no one is likely to say they won’t do a particular task or job.

These staff members may find a great benefit in their working life if their firm decides to outsource some tasks. For instance, the office junior who has to take, order and then distribute the lunch then they may wonder if it is the best use of their time. Some may be thankful for the job whereas other may just get on with things.

However, if the firm was to outsource this task to catering firm, they may find a whole host of benefits. The lunch ordering process may become a far more consistent process, it may become a speedier priceless and the office junior may be used more effectively. This decision may enable the entire company to become more effectively run and the entire firm could be happier. This example is just one way why using outsourcing could be a great option for firms to consider.

Equally, the introduction of outsourcing methods and procedures into a firm may create a need for more management jobs. This may provide staff members with scope for promotion and give them something to aim for. The importance of staff morale should never be under-estimated, no matter the size of the firm. People need to feel a level of happiness and respect at their jobs. When this occurs, the results obtained by a company are likely to be higher than a firm which is experiencing low morale.

Firms are always looking for ways to improve their business and will aim to seek a competitive advantage any way that they can. Outsourcing has become a crucial tool in the fight for firms to make money but it can be about more than that. This is why many firms are involving their staff members in discussions about the outsourcing element. This is to gauge opinion on what people think and if any benefit can be applied to their job.

Interacting with staff in such a manner is a good way for firms to show that outsourcing is not being done to force employees out of the door. Rather, it is being done to achieve the best results for a firm and its workforce.

Although the downturn in the economic and financial market has been very well documented, its impact on outsourcing has not been as straightforward as many people would have predicted. When the realisation of the financial situation hit many firms, there was a quick move to reduce all unnecessary costs and outlays and the short-sighted approach of this would have led many to think that out-sourcing was a luxury that many firms couldn’t afford. After all, with many firms having to lay off employees in order to remain viable, would it not be better to utilize the existing workforce to complete tasks rather than outsourcing work?

The unfortunate issue with this argument is that there is a huge emotional attachment to the argument which can cloud many people’s opinions of it. If it came to any other factor where a business or organization could make considerable cost savings but with no loss in quality, there would little to no objection to this new method being pursued. However, when it comes to outsourcing in a time of financial cut-backs, the benefits of outsourcing need to be re-iterated and not only focused on the financial element.

When any market becomes more competitive, all the factors of the product or service will be evaluated, not only price. This means that the quality and delivery are as important in the final decision making process for business and customers and this is where outsourcing can provide an advantage. Many of the tasks that are created in-house may be completed by staff members who have no natural talent ort flair for a task and this can result in the quality of the product or service being poorer. With outsourcing enabling organizations to tap into the experience and knowledge of suppliers who are regular providers of their service, there is a better chance to obtain a quality service or product.

The cost of the outsourced product is likely to be of benefit and it should be remembered that outsource suppliers are subjected to the same economic climate and conditions as the rest of the world. Virtually every firm or organization is tightening their expenditure and looking to take on a greater workload and this increased competition is creating a far more attractive element to outsourcing. With outsourcing firms engaging in a price and/or quality war to entice organizations to work with them, the opportunity to significantly lower costs should not be overlooked by any manager or purchaser.

The human cost during tough economic times is invariably high and can be extremely difficult for small to medium sized firms where the staff behave more like a family than a business. However, the longetivity of the business and the livelihoods of the entire workforce need to be considered in all decisions and this is where the benefits of outsourcing can vastly outweigh the negative aspects. This means it is vital to employ an almost removed sense of balance to the decision making process but in a time when so many firms and organizations are folding due to financial difficulties, realizing the benefits of outsourcing and embracing the financial and quality benefits that occur may be enough to greatly improve an organizations chance of survival.