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Offshore Outsourcing– Solution or Just Another Headache?

Written by Jill Manty  · November 1, 2010

In a comment on our article about starting a new website, Trevor Harris wrote:

I myself would not hire a whole company to build my websites. I would outsource from the Phillipines, from a quality outsourcing site. But if you do decide to outsource you could pay them monthly, to also do all that other stuff you don’t like to do; like getting backlinks. And people from the Phillipines are very reliable and efficient, and make sure they finish the job. But you could also just hire them for the one job, and be done. It would also be much cheaper as well.

That got me to thinking. Offshore outsourcing for small businesses (especially internet marketing related ones) has been a growing area. Personally, we don’t participate in offshore outsourcing, although we do outsource within the United States. But as I was looking for information to reply to Trevor, I found it difficult to find unbiased information on outsourcing to another country, such as India or the Philipines. So, I decided to gather some links on the sites that I found that offered some of the pros and cons, so that if you are considering this path, you’ll have some resources to read.

Here they are, in no particular order:

Outsource2India.com— a good list of advantages and disadvantages. One advantage listed: Outsourcing can help your organization to free up its cash flow. One disadvantage listed: In outsourcing, you may lose your control over the process that is outsourced.

Lovetoknow.com—a lot of the same information as the above list but expanded a bit with more examples.

Outsourcingprosandcons.net— over 70 articles on the topic, including ones about specific industries or process. Some of my favorites: Pros and Cons of Help Desk Outsourcing, Outsourcing Human Resources – Pros and Cons, and Outsourcing Help: Pros And Cons Of Outsourcing. Please note that while many of the articles are listed under pros and cons, they neglect to mention the cons. Also, many are written by people who own, operate or promote outsourcing services.

Entrepreneur.com— a slightly older article, it still contains good information about what, when and why to outsource.

WebProWorld.com— a good forum discussion on the topic.

I’m sure there are other articles and websites that do a good job of addressing the question of offshore outsourcing from a neutral perspective. If you know of any, please be sure to post them in the comments.


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Comments

7 Responses to “Offshore Outsourcing– Solution or Just Another Headache?”

  1. Tom on November 4th, 2010 5:28 pm

    I think outsourcing is one of the hot trends today. And with the rising cost of outsourcing within the USA, the right next choice is really the Philippines as we are known to be very professional and reliable.

  2. DanAlexander on November 18th, 2010 4:41 am

    I believe that outsourcing for an online business that is a ‘one man show’ is almost a necessity. And with the outsourcing being offshore it can only be a benefit cost-wise.

    Not many individuals building their online business from scratch can afford the $50)+/hour that western sources charge.

    I am at the point where I will begin using offshore help to build my backlinks and submit to directories and I will be using your info and links to help in my decision.

  3. Dane on November 18th, 2010 4:15 pm

    I have been on both sides of the coin, both as an employer and an employee. As an employee, you make very little money for the amount of work you need to put into working for someone who wants something outsourced. On the other hand, you can outsource your stuff for super cheap, but it can be difficult to get quality.

  4. Ajeva on December 7th, 2010 8:14 am

    I think every business outsource some or all of their operations these days simply to cut cost and gain more profit in a shrinking economy. Then, there are those who outsource mundane tasks that they hate to do themselves. There are pros and cons, definitely and if you’re not careful enough, you might get burned of your hard-earned cash—which may not be a huge amount, but burned definitely.

  5. MicroSourcing on December 9th, 2010 7:51 pm

    It’s generally more difficult to get quality when outsourcing freelance work to another country, as opposed to getting a provider to do work for you, since management is available to scrutinize employees’ work. Freelancers pretty much work alone and are more lax.

  6. Armstrong on December 15th, 2011 1:36 pm

    Outsourcing is not a good fit for every company. The costs may look low in the beginning. However, the long term maintenance costs may be much higher.

  7. Frank on May 31st, 2012 1:10 am

    I am currently developing a business (as a web applications developer) using outsourcers to do various web-related tasks. Are there online resources for detailed information on currently applied tax implications of offshore outsourcing?





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