Outsourcing is counterproductive and more expensive than building an in-house team. It is a less cost-effective solution. It is not just expensive, but also risky.
- Recruitment and onboarding becomes more complex
- Increase in infrastructure costs
- Complex employee benefits
- Lots of hidden overhead costs
- Less control on quality and service
- Less control on hiring needs
- Less control on tech talent
- Less control on security
- Things get lost through loopholes
- Projects become larger, dispersed, and inefficient
- Lots of red tape
- Everything adds up as a cost
- More bugs and less time for design and testing
- Faster time-to-market does not always mean better
- Scalability is questionable
- Access to questionable and mediocre specialized expertise
- Complex projects become more complex with increased costs
- Long-term partnerships lead to more vendor lock in and more ongoing costs of maintenance
- IP concerns on who owns what within the project
- Complex governance and compliance
- Difficult to manage standardization efforts
- Often leads to degradation in quality and service
- Increased corporate politics
- Loss of ownership and responsibility
- When things go wrong, they really go wrong, and often
- More effort to keep things as is rather than improve
- It is not in the best interest of the outsourcing third-party to produce a product that is free of bugs, continued maintenance means a long-term partnership
- Too many specialized jobs, many unnecessary, leads to less efficient and less productive employees
- Reduced job satisfaction, reduced quality of product, loss of ethics, loss of integrity, loss of culture
- Increased employee turnover
- More projects get canned
- Difficult to manage projects
- Increase in failure and chance of things going wrong
- Increased dependency on outsourcing third-party, internal frustration, and friction
- Outsourced employees don't care about your company or your product
- More potential for communication issues
- Language barriers
- Potential for time zone differences
- Potential for cultural differences
- Potential for misalignment
- Increased concern for data privacy and intellectual property
- Outsourcing third-party may not share, understand, or even care for your company vision
- Difficult to monitor on work and progress
- Outsourcing is more of a scam rather than a business solution
- Increased costs in transition for the transfer of knowledge and processes
- Potential for hidden fees and unexpected expenses
- Reduced and limited innovation opportunities which are often stifled by the outsourcing third-party
- Difficult to get new funding on projects
- Too many weak links within the corporate environment
- Difficult to control what the outsourcing third-party is sharing with other clients about your project who may be your key competitors, potential for leakage in trade secrets even with a non-disclosure and/or non-compete agreement
