Loss of Control - A Popular Myth About Outsourcing

In my previous post I attempted to remove the negative connotation associated with the term "Outsourcing".  I am still on that soapbox because it bothers me that something so common, based on the way most of us live our lives, has come to be viewed as such a bad thing.  OK, sure there are extreme examples where I would agree that certain types of outsourcing don't seem right.  But, by and large, outsourcing is a perfectly normal way to conduct business.   I suppose redefining the word may be more than I can accomplish so I'll just try to break down some of the myths associated with outsourcing so that it may be viewed in a more rational light.

 Here is one of my favorites: "If you outsource that, you will lose control over it..."

Before I point out the absurdity of that statement I have to make the same disclaimer I made before.  I don't think of our business as an "outsource business", we're just a company that does things that people want to have done.  Maybe the people who do consider themselves "outsourcing providers" don't need or want my help.  That is ok, but the misconceptions still bother me.

The best example to illustrate the fallacy of the "loss of control" argument is a very simple one (and if I can recall where I heard this I will come back and give full credit.)  One thing almost all of us do is we outsource food preparation.   If you have a significant other who normally handles food preparation (situation A) and you decide to both go out to dinner, you have effectively outsourced that food preparation and service to a restaurant (situation B).

It may seem that you would have more control in situation A but let's think about this.   In situation B if the food that ends up in front of you is not to your liking you can say "this is overcooked and I am disappointed" and, chances are, the waiter or restaurant manager will fall all over themselves to correct the situation so that you are completely satisfied.   If you said the same thing in situation A, to your significant other, what would the outcome be?   Would you even say anything?  And if you did, might you end up eating the overcooked meal anyway...or even not eating at all?

In this example the outsource provider (the restaurant) is motivated to deliver to your satisfaction or risk losing your business.  You define the metrics of success and you can ultimately choose to take your business elsewhere if that level of required performance is not met.  Put this in a business context and the relationship is between consumer and supplier.  If you establish the agreement and define success (or complete satisfaction) then you may actually have more control over the outcome in this outsourced relationship than if you did the job yourself.

Loss of control?  MYTH...

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