The advantages and disadvantages of outsourcing
Globalization has revolutionized the way business is done, and for many American companies, outsourcing is a viable tool to stay competitive. As America's close business partner, we pride ourselves in maintaining our relations, no matter what the current joke is or what political story is happening. In the 21st century, companies are focused on competing in the global economy and cutting costs as much as possible. Companies such as GM and of course, digital success stories such as Facebook have capitalized on the benefits outsourcing offers.
Outsourcing allows for lower operational costs, freeing up internal resources, and a lower-cost product/service for the consumer. All of this while maintaining healthy profit margins. Sound too good? While outsourcing can provide these benefits, it comes with some downsides as well.
We've listed below the most common problems when outsourcing a project to an offshore company.
The initial cost seems to be amazingly low - with some claiming savings as big as 75% off of hourly rates. However, outsourcing has pitfalls if a company just assumes it's the right move to make
What are the Disadvantages of Outsourcing?
Initial assessments can seem amazingly low, with some claiming savings as big as 75% off. However, outsourcing has pitfalls, and you need to be sure it is the right move for you. Consider these factors for your next outsourcing project.
With so many hidden factors, why would any company risk the potential for disaster? By understanding these issues you can capitalize on the benefits outsourcing provides whilst mitigating concerns. The truth is, only the smartest of companies look north. Canada allows businesses to retain the benefits of outsourcing while avoiding the downsides.
With so many hidden factors, why would any company risk the potential for disaster? Cost savings aside, understanding these issues and still capitalizing on the benefits can make it tough for organizations to decide whether to outsource. However, the smartest of companies only need to look north. North allows businesses to retain the benefits of outsourcing while avoiding the downsides.
Outsourcing to Canada
Outsourcing doesn't have to be done overseas, it can be as close as knocking on your neighbour's door. We speak for the whole of Canada when we say the answer to outsourcing is in the North. There's good business support and even greater cost savings.
- Communication is Easy
Canadians and Americans speak the same language. Sure, we say "Eh" and you say "Y'all", but that's just semantics. The important thing is that you say it, and we understand what you are looking for the first time.
- We're Awake When You Are
We're in your time zone. This means questions can be answered in minutes rather than hours, or even days. You can call or email a project manager and get a response when you need it.
- Few Cultural Differences
Canada and America share the same North American work ethic. We know you need it done, we know time is money, and we know how it turns out is a direct reflection of your management skills. We're invested in your success because it means we did our job right. Plus, very little needs to be explained to Canadians about how business works in the States, or about the customers being addressed. In fact, we may be able to make your project better by understanding the messaging, look, and tone that you are going for.
- Same Quality of Education and Training
Canadians are trained to the same degree as their US counterparts and have the same understanding regarding the sectors they work in. Many Canadians have even completed their post-secondary education in the US, helping build a very similar environment in our two countries.
- Travel costs are relatively small
And travel time is very short. You can get from NYC to Toronto in an hour, or if you want to drive, seven (we recommend Air Canada).
- Cheaper dollar
The Canadian dollar currently stands at around ~ 75 US cents
and the average salary is lower in Canada, so you get more for your money.
- Similar legal code
You can be assured your work is being performed ethically and that we understand the legalities of the US market.
The picture gets better quickly when you look north. Now, all you need to do is select the right partner for these ventures. We'd like to suggest Venuiti. We have been working with a variety of US companies for over 16 years, including many Fortune 500 companies like Walmart and Disney. Our company also add to the benefits with our:
- Managed services
We have a management team experienced in a variety of categories. Our leadership is engaged in all that we do, and is on the ground in the US and Canada.
- Skilled workers
At Venuiti we have a hire slow, fire fast policy. The people working here are at the top of their game.
- Understanding of your industry
- We have worked in many industries, from candy, to tourism, to healthcare. We call ourselves reinventors. We have built a business on anticipating the future of technology and marketing. While many of our competitors simply provide what is asked for and move on, we stop and say something if we see a better way. This helps develop healthy business relationships and improve your product.
- End to end services
Many firms only provide small services and don't understand the bigger picture. We provide a full range of services including business consulting, development, testing, analytics and more.
Reach out to us and let's talk about your needs... Eh? Work with Venuiti and improve your bottom line!
And we're often at work very late and very early