Hidden Implications of Cheap Outsourcing
Cheap labor and outsourcing are increasingly synonymous these days, especially now that online outsourcing has reached across 3rd world boundaries. But while wages in developing countries are nowhere as high as they are in the U.S. or U.K. (and highly attractive as a result), there are some significant problems with the “How Low Can We Go” approach to outsourcing… problems that aren’t always immediately apparent.
Impact on the Industry
Consider the impact of a low-paying job on its own industry. Low-paying jobs not only cheapen their industry’s entire market value, they cheapen their industry’s perception as well. We’ve seen way too many instances where someone will try to outsource a magazine cover or company logo for $5.00, for example, and then communicate a lucky success as if it were the norm.
What results is a bizarre culture of $5.00 outsourcers who seek out and expect a response from professionals who don’t give these types of jobs the time of day. It’s unnecessarily annoying for both parties (outsourcers and providers), and it’s something that the entire outsourcing industry can and should do without.
The (Low-Ball) Attraction Theory at Work
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Recommended Reading: Outsourcing America: The True Cost of Shipping Jobs Overseas and What Can Be Done About It |
Consider, also, the type of people that bid on cheap jobs. No professional would ever supply a high quality magazine cover, company logo, software program, or any other IT-related solution for a micropayment. Yes, it can be argued that price does not always predicate quality. But with more and more 3rd world providers recognizing their value in global outsourcing and raising their rates as a result, it’s becoming increasingly difficult to find a quality provider who’s willing to put in a day’s work for an hour’s wage.
Those who are willing to work at those rates are, quite frankly, amateurs, automated software operators (i.e., bots), or people who are simply testing the waters.
Commitment Can’t Be Bought for $5.00
One of the key traits of a professional is his or her commitment to an outsourced project. You won’t get that for $5.00. Not in the U.S. Not in India. Not even in the Philippines. With a professional, you get a committed problem solver – a committed bug fixer – a committed customer rep. Outsourcers seeking cheap outsourcing solutions get none of those things because professionals simply have no incentive to provide more than… well, $5.00 worth of whatever.
Company Reputation Put on the Line
Although companies are generally savvy enough to disguise their use of online outsourcing services, some aren’t, and they unintentionally reveal themselves even behind the pseudo-screen names or the attempts at speaking slightly broken English. (We’re sooo onto you “Client X!”) Experienced providers can tell who these businesses are, which is why requesting cheaply priced jobs risks company reputation. Outsourcing on the cheap creates a really bad impression — especially when compared to companies that take outsourcing seriously.
Think about it.
Can you imagine the brouhaha over Adobe outsourcing its pdf conversion script through Fiverr?! Or Bank of America outsourcing its online documentation to a $4.00 content mill?!
Yikes!
When thinking about outsourcing your next project on the cheap, seriously consider the industry it will affect, the type of providers it will attract, the lack of commitment it will receive, and the reputation your company may suffer as a result. You just might discover that cheap outsourcing costs a lot more than initially thought.
