Management

our post mentioned one disadvantage being miscommunication. Do you think the labor costs saved from outsourcing makes up for the loss of funds due to miscommunication issues? What are some steps that businesses could take to reduce miscommunication issues and get the company’s goals across to their foreign employees?

ANSWER

Discussion Response

Discussion Response

The main benefit that a company gets from outsourcing is cost saving. Through outsourcing, companies can save on production and labor costs, which largely influences the revenue of an organization (Aswini, 2018). When operations are outsourced, they are usually done at a lower cost. Hiring and staffing in low-cost countries are less costly, which means that the costs of hiring, training, and employee development are lower (Aswini, 2018). There is also the benefit of having to deal with fewer regulatory requirements. While outsourcing provides many benefits for companies, it also comes with some unique challenges. Miscommunication is the main challenge that companies face when outsourcing services in low-cost countries (Aswini, 2018). There are also other threats and challenges such as increased confidentiality risk, unforeseen relocation and production costs, low workforce morale, and low service quality.

Miscommunication arises from challenges such as pronunciation, syntax, and vocabulary. Differences in accents may also result in miscommunication since they make it difficult to understand what the other person is saying. Colloquial and informal terms may be difficult for non-native English speakers to decipher. While this may be a challenge and may cost a company money, the benefit of cost-saving from lower production and labor costs outweighs it. Companies can hire employees who are properly-versed in the native language of their clients to make communication easier. They can also hire HR managers that are conversant in different languages to make communication with overseas employees easier. This way, the losses resulting from miscommunication can be minimized while production costs will be reduced through outsourcing.

References

Aswini, K. (2018). Advantages and Disadvantages of Outsourcing.