Outsourcing is one of the best ways for business owners to save money on the market today. You can’t argue against this fact. By outsourcing you cut the costs out of your business model and pass them onto another company. But at the same time, outsourcing can also be a problem for your business and here’s why.
Damaged Reputation
Yes by outsourcing, it is possible that you damage your business reputation. You have to make sure that you are using a company that is willing to follow your quality practices. Otherwise, you could end up delivering an inferior product to customers. If that happens, you can bet they will not forgive your company. In fact, you could lose a lot of customer support due to this.
Are You Really Saving?
Despite the idea behind outsourcing if you choose the wrong company it can mean higher costs regardless. This is due to the fact you may have to fix more mistakes. As such, you’ll need a greater investment in customer support. So essentially, you’ll be cutting money out one area of your business to pay for another.
Is It Legal?
You might find that the company or business you are using isn’t as legally clean as you would hope. Many sourcing businesses around the world today breach the Modern Slavery Act. if you get caught with ties to a company like this it could damage your rep beyond repair. You might even find out that can be held liable for your shared actions. Check out this infographic for more details about this.
Infographic by Altius