Debating Whether Outsourcing is Good or Bad is Pointless

Last week, Fairfax Media received a tip from a well placed source that Brisbane City Council is planning to outsource 50 IT jobs to Asia. While BCC will become the first government agency to outsource overseas if the plans go ahead, outsourcing in the public sector is nothing new.

The lingering question is still whether outsourcing is good or not. Considering the many challenges SMEs face today, is this the right question that they should answer?   

SME outsourcing is not a guaranteed success. While the rewards are big, the losses can be costly. The process requires strategic decision making, planning, and good governance to produce desired outcomes.

The real issue then is not whether outsourcing is good or bad. It's about finding the right service provider, and the necessary service agreement to meet business needs. 

This requires a thorough look at different sourcing options – offshore staffing, domestic outsourcing, multi-sourcing and other business models.

SMEs need to take into account internal resources, business processes, goals and desired outcomes, and other related factors.

They must establish an arrangement that can withstand constant changes in their industry, technology, and customer needs.

As a result, pure cost savings doesn't become the sole driving force to outsource. Smart BPO buyers look past the price tag. Organisations, whether private or public, from small businesses to large corporations, need to forge a partnership rather than just exchange a business transaction.

The advantages of outsourcing can be combined with in-house delivery. According to a research it is achievable – Aussie SMEs were able to drive growth by augmenting their local in-house team with offshore staff.

Pondering whether outsourcing is good or bad is a waste of time. Ultimately, it's about how an SME can remain viable despite the odds.