Even if we set macro-trends aside, not even the fact that an average corporation involves 10% more outsourcing, there are many areas where the figures indicate the opposite. So if we’re talking about macro-trends, perhaps it is not the best indicator, as a specific industry or organisation might be. The truth is, outsourcing will continue to grow, and to regress at the same time. Nothing dramatic that could be called a trend shift will occur in the next five years.
What makes it grow?
The reason behind the future outsourcing growth can be defined as the constant need for reducing costs. As a rule, if you move a workplace from inside to outside the house, work cost will plummet. If any large organisation wants to avoid its growth slowing down, it will have to think of ways to equalise the difference in the market by cutting costs. The point, is there will always be companies in need of outsourced jobs, and with new online platforms, outsourcing is getting easier from day to day.
What makes it shrink?
On the other hand, outsourcing will also shrink, following the idea that if you outsource a job, you are making that job a commodity, to the effect that you are limiting your worker’s ability to contribute by bringing new ideas to the company. And it works both ways. A hired worker will never propose a new idea that will make the procedure more efficient, faster and cost-effective, because that prospect may eliminate the specific task that very worker is hired to perform.
A vivid example
If you hire a landscaping consultant to prune your trees, he are never going to tell you that you should probably remove those trees from the company park, because they are blocking the view of elaborate flowerbeds and the fountain. On the other hand, if the landscape consultant is on your payroll, he will continue to work out the best possible solution that will give adequate results along with saving costs and improving the landscape of the premises in the process. The conclusion is that with the increase of outsourced jobs, your company is getting increasingly compartmentalised and subdivided.
Small vs. Large Companies
In return, this can lead to a decrease in flexibility and opportunities to develop new ways of doing the job. Take an example of a heavily outsourced IT company that competes with a smaller company that deals in network design. The younger company is a winner here, because it is small, and thus can afford to be inefficient form time to time, and what is more, from these inefficiencies, new discoveries may stem. On the other hand, the outsourced jobs feel detached from the large company and work one-way only. And if the smaller company overtakes it on the market, the goliath may never recover from the blow.
It seems that where larger companies are concerned, the need to outsource cuts both ways. The requirements of the stalling market force the companies to resort to outsourcing in order to save costs and simplify the work process. And yet at times when the market expands or competition becomes more active, the companies tend to move the work inside the house in order to facilitate growth and make most of the new opportunities in real time.
About the author: Dan Radak is a web hosting security professional with ten years of experience. He currently works with a number of companies in the field of online security, closely collaborating with a couple of e-commerce companies. He is also a coauthor on several technology websites