The terms outsourcing and remote staffing are used interchangeably, but in reality, each term means something slightly different.
So, we wanted to share our take on these different terms and how these they can fit into your organization and drive business growth.
What is Outsourcing?
When you make use of any third-party resource for the purpose of accounting, marketing, web development, HR, customer services or any other service, it is known as outsourcing.
As opposed to popular belief, outsourcing does not refer to the execution of menial tasks. It involves complex tasks that require expert skills.
Depending upon the model selected, businesses may move their entire division to a third-party or delegate some tasks to be executed by the provider.
For example, an organization may have an in-house team responsible for planning a digital marketing campaign, but they may lack content producing specialists to support their campaign activities. In such a situation, the company may outsource content creation to an external provider who will take guidance from the in-house marketing strategists.
Even though cost efficiency is the main factor behind outsourcing, this model presents an amazing advantage of allowing employees to focus on their core role and solve capacity issues.
What is Remote Staffing?
There are two types of remote staffing. The first type of remote team simply means a team that works in the field or works from home.
Secondly, remote staffing may also refer to a team that works for another company and yet is working with you on a specific business project. Remote teams are typically managed by you as they are an extension of your in-house team.
For example, a company may hire a web development team where it will be instrumental in all stages of the project from conception to completion. This model goes beyond outsourcing as the team does not work alone but in close cooperation with the company that hires them. Each stage of the project is closely monitored by the parties involved ensuring that the company has a lot of control over the project.
What Are the Pros and Cons of Outsourcing?
Pros of Outsourcing
When you outsource to another country like India, you get to relish the benefits of significant cost savings
Access to a wide range of talent pool
When you have an agency as your collaboration partner, you will have access to a diversified talent
When you partner with an outsourcing vendor, you need not go through the hurdle of hiring a new person which is time-intensive
By outsourcing to an agency, you will be able to upscale fast. This will open up opportunities to take up new projects and work with new clients
When you outsource your work to an agency, your business will work round the clock as there will be a time difference between the in-house team and the outsourcing vendor’s team
Simplified project management
Most of the outsourcing companies use dynamic and intuitive platforms like Slack and Asana to effectively manage what’s being done
Peace of mind
At the end of the day, choosing to outsource your work to a reliable agency will give you peace of mind because you need not lift a finger as everything will be handled efficiently
Cons of Outsourcing
You may lose some control
When you outsource work to an external agency, you lose control of how the work is being performed. As long as you trust the agency you have hired, this will not be a problem
Lack of focus
As outsourcing agencies tend to have multiple projects at the same time, sometimes, your project may not get the attention it deserves
Things may get lost in translation
When you are passing work through email or telephone, important work may be lost in translation. This may cause some hassle
May increase financial burden
Although it is nice to bring an expert agency, if you don’t have clear terms and conditions, you may end up taking the financial burden if the company you are outsourcing to cannot deliver
What Are the Pros and Cons of Remote Staffing?
Here are the pros and cons of outsourcing to remote staff.
Pros of Remote Staffing
Easily scalableWhenever your demand for talent increases, you can get access to pre-screened candidates that can be interviewed and hired at a moments notice
No high costsWhen you hire a remote team, you get people with the reliability similar to your in-house team without the high costs
Increased control over communicationEven though they are not physically present in your office, your remote team will be part of your organization just like your full-time employees. This will give you more control over how you communicate with them
Cons of Remote Staffing
Tough to find the right peopleFinding the right fit of people for your type of work will be a tedious task.
Lack of proactivenessRemote resources must be proactive and self-motivated individuals. Lack of these qualities will affect your company’s growth
Establishing a process can be a challengeWhen handling disparate teams, it will be hard to manage the delivery of work
Are There Any Success Stories of Outsourcing to an Agency?
Here’s how outsourcing played a huge role in the success of these two companies
During the initial years, Alibaba started as a small internet company called China Yellow Pages. Today, it ha grown to be one of the world’s largest global marketplace.
In the early stages, the company outsourced website development to an American company. Jack Ma did it because at that time China was short in development talent and the US developers had the skills he was looking for. Outsourcing the web development needs to another firm helped them grow into what they are today.