Outsourcing: Pros & Cons

BY White Label | March 8, 2019

When deciding whether or not outsourcing services are right for you and your team, there are a few key components, good and bad, to keep in mind. Because, not every white label relationship is the same.

To better help you understand some of the more common differences between in-house and outsourcing, we’ve put together a quick comparison list.

Quality

Pros: All help comes pre-vetted. This means you don’t have to worry about whether or not the work will get done correctly. Instead, you can pass the client a product they (and you) can stand behind.

Cons: While we don’t want to say it’s a leap of faith, you will have to trust that due diligence has been done on part of the outsource team. Also, that all parts have been accounted for, and that projects may require a back and forth dialogue to ensure deliverables reach expectations.

Timing

Pros: With the ability to work on opposite sides of the earth (meaning you sleep while they continue with projects), aggressive deadlines are easier to navigate. Plus, there are more people to call upon when needed.

Cons: Taking into account differing time zones and holidays, deadlines will need to be considered for both teams right away. Also, communication can be a challenge, due to opposite work schedules resulting in a minimum of overlapping business hours.

Efficiency

Pros: You only pay for what you use. Break time, holiday pay, taxes, and staffing levels are no longer a concern of yours.

Cons: This comes down to you. Outsourcing companies are only as effective as you are. Meaning, if you’re not sure what you need or if you’re not clear in your goals and expectations, the other team will not be able to be efficient—no matter how skilled or organized they may be.

Communication

Pros: If you work with a project manager based in the U.S. needs from the international team are managed on your, and your clients’, schedule. So, you won’t need to worry about emails being lost in translation since there is someone available during the daytime for discussion and questions.

Cons: If you don’t have a project manager based in the U.S., there is a higher potential for misinterpretation and lost time. You’ll need to be extremely clear and direct in your approach with an international team. We recommend succinct project briefs, timelines with a substantial buffer, an initial kickoff call, and frequent check-ins throughout the day and night to ensure solid expectations.

Staffing

Pros: Outsourcing immediately increases your number of employees, and you’re saving on benefits and maximizing utilization by letting the other group manage the ups and downs of the project scope themselves.

Cons: You haven’t vetted the team yourself. Well, to the same extent you would with someone you’ve shaken hands with or collaborated in an office with. So, you’re taking the word of someone else that they’ve ensured the skills and professionalism on the other end.

Trust & Preconceptions

Pros: Once you’ve worked with an outsourcing partner by progressively offering more and more projects, you’re able to establish a consistent level of quality and knowledge. This applies to overall reliability, as well as how they’ll have your back in tight situations. At a certain point, they become a trusted partner and an extension of your team.

Cons: Developing trust takes time, and often, miscommunication will happen along the way. It’s also common to work with multiple vendors to distribute workloads and find each outsourcing partner’s strengths. It also takes time and commitment to be a good partner, but the more groups and people you work with, the more likely it is you’ll work with organizations that are not a good fit.

Cost

Pros: You get the same work for a fraction of the cost without the overhead expenses and unbillable time that must be budgeted for in-house teams. Often, you can agree to a scope of work and price that works best for you. With a good outsourcing partner, you can count on that fixed cost and maintain budgets with your clients.

Cons: The whole point of a white label service is to cut your costs significantly. So, the only downfall we can foresee is a partnership with an unreliable team that forces you to do the work yourself anyway, while having already spent funds on the original project. Or, a partnership where undisclosed fees and overruns are commonplace.

Anything Else?

Sure, there are other considerations to, well, consider. But these tend to be the most common. And, every company will see the benefits of outsourcing differently. However, just as we would tell our own potential clients, don’t jump in head first. Instead, test the waters to make sure you’re comfortable with any new white label partnership.