The Pros and Cons of Outsourcing Overseas (2024)

byMatt Stein

Shrinking budgets. Shorter turnaround times. Extended hours of support. Increased scale. Expanded scopes of work.

Do any of those sound familiar? I'm positive they do!

As in-house Creative Services leaders, we are constantly striving to balance the different needs and objectives of our clients, our staff and our executive management teams. And while we have many strategies at our disposal to help effectively manage these conflicting objectives, there are few as effective--and challenging--as outsourcing projects and resources to an offshore partner.

The best way to start exploring an overseas outsourcing strategy is to assess the pros and cons of shifting work offshore. Here are a few important items to consider:

Pro: Cost Savings
Offshore creative resources almost always deliver significant cost savings over in-house resources or freelancers and are a strategically sound option to consider for production-focused design work. The lower resource expense will allow you to push the savings to your bottom line or reinvest in other onshore resources or tools that add more value to your creative capability.

Pro: 24-Hour Support Model
Offshore resources can help your Creative Services capability offer a 24-hour support model--an important point of distinction for your team that can help you better manage rush project requests or better support your company's satellite offices and business development activities around the globe.

Pro: Ability to Quickly Scale Resources
As a Creative Services leader, you will inevitably need to handle an increased demand for creative support as your company grows or positions itself to drive new revenue streams. Outsourcing your production design workload to offshore resources is a cost effective way to quickly increase your resource pool, since offshore partners typically have access to large pools of inexpensive resources with specific training in production design.

Con: Complexity of Training
One of the most challenging aspects of outsourcing offshore is the complexity of training your overseas resources. Language barriers can make it hard to assess how well your offshore resources are assimilating their training and can lead to quality control issues or decreased production efficiency if your training strategy is not closely managed. In addition, the distance and time gap can make training onerous on your domestic-based team.

Con: Complexity of Technology Setup
When outsourcing to an overseas resources, you will need to solve complex technology issues to ensure your offshore team has full access to your local servers, DAMs, workflow tools and other networked systems. You will also need to account for the network latency your offshore team will encounter; otherwise, you run the risk of miscalculating your production allocations and missing project deadlines.

Con: Onshore Stakeholder Concerns
Outsourcing to overseas resources can have a negative impact on your onshore team's morale. Your clients and internal stakeholders may also express concerns that outsourcing overseas will reduce the quality and level of support they are accustomed to receiving.

There is no "one size fits all" answer for deciding if offshoring is the right decision for your creative team, and there are multiple factors to consider that are specific to your business needs and engagement model. For many companies, the benefits of engaging in an offshore production model are numerous and can lead to significant cost savings for your organization while also enhancing your Creative Services support model. The best approach you can take to ensure your creative department's success is to carefully weigh all the pros and cons of outsourcing overseas and develop a plan to address to challenges you will encounter before you begin to migrate work offshore. Be sure to speak with other creative leaders who have offshored design work to learn from their experiences.

The Pros and Cons of Outsourcing Overseas (1)

Matt Stein

Matt has over a decade of experience leading Creative Services capabilities. He currently serves as Senior Director, Creative Services, for a loyalty-based marketing company in St. Petersburg, Florida, where he leads a global team of 40 creatives with a focus on operational management and creative development for online, mobile and print media channels.

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The Pros and Cons of Outsourcing Overseas (2024)

FAQs

What are the pros and cons of international outsourcing? ›

While cost savings are a primary driver, outsourcing globally also enables organizations to tap into a diverse talent pool, foster innovation, and gain a competitive edge. However, managing cultural differences, time zone challenges, and maintaining quality control are important considerations.

What are the pros and cons of it outsourcing? ›

Summary of the Pros & Cons of Outsourcing IT
✔ Pros of Outsourcing IT✘ Cons of Outsourcing IT
Flexibility to focus on high value tasksCompanies may prefer to house and maintain critical infrastructure
Lower management and development costThe wrong outsourced partner can lead to headaches
3 more rows
Jan 2, 2024

What are the pros and cons of overseas labor? ›

Here are some of the pros and cons that come with this decision.
  • Cost reduction. One of the main advantages of outsourcing manufacturing is cost savings. ...
  • Greater flexibility. ...
  • Faster and better quality. ...
  • International sales. ...
  • Risk reduction. ...
  • Quality problems. ...
  • Language barriers. ...
  • Communication barriers.

What are the pros and cons of offshore outsourcing? ›

The Pros and Cons of Outsourcing Overseas
  • Pro: Cost Savings. ...
  • Pro: 24-Hour Support Model. ...
  • Pro: Ability to Quickly Scale Resources. ...
  • Con: Complexity of Training. ...
  • Con: Complexity of Technology Setup. ...
  • Con: Onshore Stakeholder Concerns.

What are pros of outsourcing? ›

11 Advantages and Benefits of Outsourcing Work
  • Reduce your labor costs. The single most significant cost for most businesses is labor. ...
  • Improve team efficiency through outside expertise. ...
  • Grow on a budget. ...
  • Focus on what's important. ...
  • Access to global talent. ...
  • International expansion. ...
  • 24-hour production. ...
  • Increase productivity.
Jun 15, 2022

What are 3 disadvantages of outsourcing? ›

Disadvantages of outsourcing
  • service delivery - which may fall behind time or below expectation.
  • confidentiality and security - which may be at risk.
  • lack of flexibility - contract could prove too rigid to accommodate change.
  • management difficulties - changes at the outsourcing company could lead to friction.

What do you think are the pros and cons of working overseas? ›

What are the Pros of Working Abroad?
  • Better Career Opportunities. ...
  • Attain Foreign Language Skills. ...
  • Enhance Intercultural Communication. ...
  • Increase Self-Confidence. ...
  • Managing Taxes Abroad Can Be Confusing. ...
  • Feelings of Loneliness and Instability. ...
  • Dealing with Culture Shock. ...
  • Financial Cost.
Oct 2, 2023

Why outsource overseas? ›

Cost savings

Global outsourcing can save on costs for your organization by having day-to-day tasks completed in a lower-cost economy, such as the Philippines, where employment costs are up to 70% less. Hiring new staff is an expensive process. Many overhead costs come alongside hiring a new offshore team.

What are the advantages and disadvantages of international labor? ›

Overview. Foreign employment can have many advantages, such as gaining new skills, experiencing different cultures, and earning a higher salary. However, there can also be some disadvantages, such as being away from family and friends, struggling to adjust to a new culture, and facing language barriers.

What are three advantages and three disadvantages to outsourcing project work? ›

The Pros And Cons Of Outsourcing
  • Advantages Of Outsourcing. ...
  • You Don't Have To Hire More Employees. ...
  • Access To A Larger Talent Pool. ...
  • Lower Labor Cost. ...
  • Cons Of Outsourcing. ...
  • Lack Of Control. ...
  • Communication Issues. ...
  • Problems With Quality.
Jul 17, 2017

What are the pros of outsourcing maintenance? ›

Contracting Maintenance: The Benefits of Outsourcing Maintenance
  • Easing the Burden of Admin. Much of the regular maintenance tasks come with administrative duties that eat up a lot of managerial hours. ...
  • Cutting Costs in Lean Times. ...
  • Scalability in a Time of Change.

What are the disadvantages of outsourcing quizlet? ›

Q-Chat
  • The cost and uncertainty associated with payback. ...
  • Issues with communication and language. ...
  • Loss of control of standards and information security. ...
  • Complex hierarchies. ...
  • Organisational change and redesign. ...
  • Loss of corporate memory and vulnerability. ...
  • Cost and time with use of information technology.

What are the advantages and disadvantages of international operations? ›

On the one hand, international trade can provide access to new markets, increased profits, and access to new technologies. On the other hand, it can present risks such as language barriers, cultural differences, and complex regulations.

What are the downsides or disadvantages of global sourcing? ›

Global sourcing can be an effective way to reduce costs, access new markets and find new suppliers. But it also comes with challenges such as geopolitical instability, cultural differences, regulatory issues and currency fluctuations.

What are the pros and cons of inshoring and outsourcing? ›

Insourcing offers full control and the ability to develop internal skills but comes with high costs and reduced flexibility. Outsourcing allows for cost control and increased flexibility but carries risks to confidentiality and loss of process control.

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