Is outsourcing pain or gain?

Outsourcing can be cost-effective strategy when used properly. There are times when it is more affordable to purchase goods from offshore companies with comparative advantages than to produce the goods or services locally.

Apparently, Ford Motor Company- the renowned American automobile giant have outsource bookkeeping duties to independent accounting firms and now, they have set up a software development center overseas to manage their e-business solutions.

So the concept of outsourcing sounds tempting but what really is outsourcing then?

Well, outsourcing is the act of one company contracting with another company to provide services that might otherwise be performed by in- house employees. The company itself could perform the tasks that are outsourced, but in many cases there are financial advantages that come from outsourcing. Many large companies now outsource jobs such as call center services, e-mail services, and payroll.

Cost reducing is definitely the first motive of outsourcing. The thing is that it does not only stop there. When there is economic boom in some nations – they might face difficulty in increasing their capacity of assembly line and laborers at short notice. Outsourcing can help firms not to compromise at times of boom. Likewise, outsourcing also helps when companies face high employee turnover.

When large projects are being held, companies might not have a skilled laborer at their disposal. On-site outsourcing of the project can bring the right skilled labor to help with the project and the native employees of the company can work under them.

Outsourcing also helps reducing overhead costs. For instance, a firm needs additional rental space to expand its business. In some cases, it will make more business sense to outsource some of the responsibilities to other offices, rather than rent more space. Renting additional spaces may cost more than the profit earned from the projects in the long run.

However, outsourcing has some inherent disadvantages also. The company often has less direct oversight and control of the product or service it is purchasing, which can threaten the relationship between the company and its customers.

But THD provides you the high quality service and your project is at the top of our priority list as it pertains to valuable clients. As a safeguard, we send daily checkpoints to ensure that projects are done efficiently and precisely reliable to avoid hassle-free drafting service.

Communication can cause problems. Outsourcing overseas can lead to language barrier issues. Outsourcing, especially offshore, is sometimes criticized, which can mean bad public relations for a company. Security issues, such as keeping proprietary information private, also can arise. Hiring an outside company presents challenges to the hiring company.

Well, its true language barrier and security issues do pose a threat.

THD staff can converse in English efficiently and have undergone an IELTS programme organized by British Council Nepal. For bigger projects where there is a need for all different trades to communicate with each other, we do know how to use online document management systems e.g. Union Square

THD follows the concrete procedure of working quality system; we comply with:

-Confidentiality and security of all the projects

-Code of conduct

-Specific clients’ requirements


In a nutshell, outsourcing can aid a growing business to grow as big as it possibly can. Whether outsourcing is a good thing or a bad omen to the society is always a debate. In fact, the battle has been going on since at least the 1880s, when the first New England textile mills began moving production to the Carolinas. Whatever name it goes by — “runaway plants,” “outsourcing,” “global sourcing,” “offshoring”— workers and the public tend to hate it, executives view it as inevitable and economists defend it as part of the painful process by which market economies prosper.

Time has come where nations do not fight wars with guns but a nation devours another nation by selling consumer products. So, outsourcing whether it be a good or a bad thing, it surely is needed for survival of businesses.


In conclusion,

Have you ever outsourced your project? If, yes.

How was your experience? Whether good or bad experience?

If, no.

Why not think about outsourcing for the first-time, I suggest you to give a trial on outsourcing your project and see whether it’s beneficial to your organization or not.

Please share your views!


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