Outsourcing Challenges To Consider Before Sending Work Abroad

Outsourcing data entry jobs isn’t just a solution for massive companies. More medium and small businesses are looking overseas to outsource data entry and other technology-based jobs that their current staff doesn’t have the time to complete. Though the solution has helped many businesses get out from under data avalanches, outsourcing your work abroad has some human resources challenges, including data security, cost, and worker motivation.

Monitoring Contractor Performance

You’ve digitally outsourced some of your work to a competent independent contractor. Since that person doesn’t work in your office, you don’t have a good way to monitor how the work is going. When you have multiple independent contractors working on several outsourcing projects, connecting with them is even more difficult.

Keeping in touch is essential. Make sure you or the team managers reach out to these people once a week. Endeavor to talk about things that aren’t just work; make the personal connections you have with your staff in the hallways and in the break room. Conveying a sense of team spirit is difficult digitally, so don’t forget that there’s a human on the other end of those emails. This will greatly benefit your turnover rate.

Know What To Outsource

Data entry is certainly one job that you can outsource without much worry. However, outsourcing concerns become amplified tenfold when you outsource sensitive job responsibilities. In order to prevent this, you must know what to outsource. Typically, if something requires interpersonal relationships, you should probably not outsource that task, like human resource management for example. Either way, knowing what to outsource remains a problematic question that is yet to be answered.

Data Regulations (or Lack Thereof) in Overseas Countries

India is one of the most popular countries for outsourced data entry. But outsourcing to India isn’t as simple as selecting the company through which you want to hire independent contractors and sending your information along to get sorted. Using T1 connections, the Indian government has had problems with data privacy in the past, as they lacked the type of data safe harbor laws that the EU has had in place for decades.

Though the government is working on solutions and laws to protect the data, you want to know that your outsourced data is safe right now. Cloud companies like Oracle are working on bringing their cloud services to overseas countries like India, reports Oracle’s CEO Mark Hurd. Arranging secure overseas data transfer will be much easier if your current cloud company has a data center in the area you’re working with.

The Cost of Technology

When you’re outsourcing abroad, cost can be prohibitive. You need the cloud infrastructure that grants your independent contractors access to your data, and you need to hire competent contractors too. Plus, small businesses often must compete with larger businesses for the best contractors and the best rates. Because larger companies have more business to offer, they’re tough competitors.

Small businesses need to do stringent cost-benefit analyses when considering outsourcing. If you end up spending more on your cloud services or your independent contractors than you save by outsourcing, what was the point?

Outsourcing abroad isn’t a solution for every business. It may be a great corporate resolution, but perhaps not for small business. Some of these challenges might be too financially or logistically prohibitive to small businesses. However, if you have a significant amount of data entry work, finding a way to make outsourcing financially feasible could give you significant organization and time gains in the long run. If you’re up for navigating a new arm of your business model, this is a promising way to get some of your company’s work done.

Image from http://www.mbs.ac.uk/news/research/accounting-finance/socially-responsible-outsourcing-global-sourcing-with-social-impact/