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Over 50% of all companies worldwide hire third-party teams to connect with customers. It is also expected that the global IT outsourcing market will grow by $98 million from 2020 to 2024. However, outsourced solutions have their own advantages and disadvantages for companies across all industries. Just like the classic, in-house production has its benefits and downsides.

Your choice between the two depends on a wide range of factors. In this article, we decided to unpack the fundamental principles of each method and help you choose the one that fits you best.

In House Production

In-House Production – Advantages

Better communication

Basically, the whole team works ‘under one roof’ and it is easier for the members to maintain strong communication, especially when a project involves several stages. For example, if you have a question, you can always ask your colleague and receive an answer straight away.

This makes the whole process of communication not only faster but also more effective.

It’s easier to control the quality of the product

With an in-house production team, it is easier to keep an eye on the quality of the product. The tasks conducted by every member of the team can be assessed and calibrated on-spot.

In-House Production – Disadvantages

Finding and training employees is a long process that requires funding

Training is one of the most important elements in the process of onboarding and nurturing the employees. As a result, you will have a strong staff capable of developing more effective and innovative solutions. However, the training process is time-consuming and costly. According to Statista, larger companies in the United States, for example, spent over 100 training hours per employee in 2020.

In-house employees need benefits

Sick leave, holiday leave, life insurance, retirement and savings, social security and Medicare. When it comes to in-house production, the employer has to take care of all these expenses.

It can be difficult to find the top talents in the labor market

Some of the professionals you might need are already employed. On top of that, if your office is located in a small city, there might simply not exist any professionals in a certain area. Thanks to the internet, you can hire workers remotely and work from different parts of the world. But a remote team comes with its downsides (time zones, registration of foreign employees in the staff, etc.).

Outsourced Solutions

Outsourced Solutions – Advantages

You can hire a professional from anywhere in the world

Outsourcing provides you with a unique opportunity to hire a person or an agency from anywhere in the world. If your region doesn’t have enough specialists in a certain outsourcing, can help. They will work more independently, and you won’t have to check on them daily. You will just receive the preliminary and final results.

Outsourcing is great for short-term projects and targeted disciplines

You can outsource both a short-term or long-term project depending on your needs. Moreover, outsourcing allows you to avoid bringing new employees into the company and directly bring in a particular specialist.

There are plenty of resources that will help you find the right company to work with

Choose the area of expertise, the expected length of the project, and whether you need an entry-level or an expert-level employee. You can propose a contract directly to someone with whom you would like to work. At IDM Products, we service more than 100,000 products, representing more than 1,000 of America’s leading manufacturers.

Outsourced Solutions – Disadvantages

Many companies create websites that exaggerate their talents

With outsourcing, you have to spend time reading reviews and doing your own research before hiring outsourced professionals which takes time.

The highest-rated companies are expensive

In case you decide to hire a top-rated outsourced company, you might have to splurge on their services, but you can save valuable resources and time by not having to train a new employee.

You might be working in different time zones

Depending on who you outsource to, you could be starting your day, while your outsourced employer is preparing to go to sleep. Such situations would require you to spend more time organizing the whole process.

Do you prefer in-house production or outsourced solutions?

There’s no need to choose only one. Both options have their upsides and downsides, and both of them are perfect for some projects. If you manage to create the perfect ‘mix’ of in-house production and outsourced solutions, you will be getting the best of both worlds.

At IDM Products, we handle everything from product sourcing to distribution, and can help create your outsourcing plan.

Contact us to find out how our services can save you resources and grow your business.