Outsourcing as a Business Strategy: The Pros and Cons

Outsourcing as a Business StrategyCompanies need to learn how to adapt to the progressive times. Traditional business models won’t just cut it today. Given the current climate of economies, one thing is clear: technology is reshaping the world. With the internet allowing businesses another platform, companies are becoming multi-dimensional. They can easily branch out into other industries.

While this is a welcome opportunity for organizations, it can complicate a company’s business strategy.

Business Management Strategies: A Look at Outsourcing Services

Outsourcing isn’t really new. Its popularity, though, roots itself in its rapid growth in recent years. The global outsourcing market has been booming. A range of industries outsources services for different reasons. Working on data management, for example, requires high skill levels. Professionals across the world are capable of providing these services, but for lesser costs.

Knowledge processing is an integral part of several industries. Health management, office space design, and support for underwriting and procurement are just a few of the many services that outsourcing solves. Its impact has been instrumental to many companies. From 2000 to 2012, the revenue of the outsourcing industry gradually grew over time. In twelve years, it doubled from 45.6 billion to 99.1 billion USD.

The Advantages and Disadvantages of Outsourcing

Global outsourcing took a dip in 2013 but recovered quickly the following year. Here are its pros and cons:


  • There are less operating costs.
  • The company can focus on its actual product or service.
  • An organization has access to skills that are world-class.
  • It frees internal resources for other needs.
  • It allows the better use of external resources.
  • It saves the company from the burden of carrying all risks.
  • It provides the work that the company can’t do.
  • The company has more time to do more work.
  • There is an access to better technology and specialized workers.
  • The company has a handful of options to choose from.


  • There are possible security risks.
  • The company doesn’t control the actual work process.
  • The quality of work can be questionable.

Looking at how much the benefits outweigh the issues of outsourcing services, its growth comes as no surprise. For the success of a business, an organization must always look at all possible options.