Pros and Cons of Outsourcing

Nowadays outsourcing services have become the norm. Business had to rely upon BPO companies for their other important functions such as HR, customer service, recruitment, and numerous administrative task to name a few. 

This widespread success had companies asking for more knowledge-specific services such as Engineering, Architecture, Medical, and many more. That being said, their aim is to lower the cost of their daily, monthly, or even yearly operations to increase their sustainability. 

Outsourcing provides companies with various options to streamline their operations, minimize cost, access competent talent pools, and drive up productivity. However, outsourcing isn’t always smooth sailing for other companies when it comes to the service they experienced. 

With that in mind, there would always be a few bad apples in a basket of good ones. Which had left those negative sentiments with distaste against BPO providers. 


  1. Budget-friendly 

Outsourcing various processes or services has been a tried and tested solution to drive down costs. Instead of expanding the in-house staff that cost way more by means of recruitment, training, equipment, and higher compensation and benefits than outsourced employees.

  • Lower labor costs. 
  • Lower investments in equipment and facilities. 
  • Lower operating costs. 
  1. Access to a larger pool of candidates 

More often than not, in-house recruiters and even small business owners are scraping the barrel by looking for qualified candidates to hire. Outsourcing provides a wide scope of potential candidates from all over the world who can work remotely and locally. 

In addition, outsourcing companies offer services such as Recruitment Process Outsourcing (RPO). This service is offered to companies who are looking to outsource their recruitment department. Making it cheaper and easier for businesses by focusing on their core goals. 

Types of Recruitment Process Outsourcing: 

  • Contingency Recruitment – Emphasis on faster recruitment thus sacrificing quality over quantity.
  • Retained Recruitment – Emphasis on the quality and expertise of the person to be hired.
  • Contained Recruitment – Combination of Contingency and Retainer Recruitment.
  • Custom Recruitment – This is a customized placement fee prioritizing the number of positions that need to be filled and the available budget of the client is taken into consideration.


  1. Time Zone Difference 

Businesses are more likely to encounter BPO companies that have their facilities located abroad. Primarily located in India or The Philippines with different time zones than the US, UK, and or Australia. That being said, without due diligence on the side of the BPO company. BPO workers might find it hard to keep track of time and the BPO clients will find it erratic to schedule meetings. 

  1. Cultural Differences

As mentioned previously, BPO workers are likely to be Indian or Filipino Citizens. Of course, their culture is much different from westerners. Cultural differences impact the cohesiveness of an organization. Different cultural backgrounds can create misunderstanding and conflict in the workplace such as different use of words like idioms and habits that are inherent in every culture.  

The Wrap Up

That being said, all types of organizations have their own pros and cons. However, the BPO industry’s cost-effective solutions outweigh the cons. Although different cultures and time zones affect its operation. At the end of the day, those differences are minuscule compared to what it has to offer.