MSP Outsourcing Client Work
We have all had outsourcing nightmares. In fact, the time has shown that the word “outsourcing” has a negative connotation. More than likely, certain instances come to mind as you read this article. For example, many times you couldn’t understand the representative on the phone. Or the times you have been transferred over and over again, each time having to repeat yourself, only to be disconnected. Does all that sound familiar? Yet, it is even more frustrating to find out that the company you outsource with is also outsourcing your work overseas.
Why Do MSP’s Outsource Your Work?
MSPs outsource your work offshore to make more money. It’s really that simple. In the book “Infinite Scale” the author goes into great detail about how the average engineer costs him $65K per year and he only gets 65% billable time out of him. He reasons that he could make a much bigger profit outsourcing offshore. And that is how many outsourcer’s think.
There are a number of problems with this mentality. First, the cost savings are generally not passed on to you. For example, I know of one company that pays an offshore outsourcer in Columbia $6 an hour for project work, and yet they still charge their clients $150 an hour. Yikes! Now that is a good profit margin….that you never benefit from!
Second, they sacrifice quality for the almighty dollar. This is especially true when the offshore outsourcer is customer-facing. Hence, the example is first given in this article. However, it is also true when it is only the Outsourcers engineers who talk to them. Understandably, this is due to communication barriers, which makes it difficult for offshore engineers to understand the requirements. In the end, you get subpar work.
Third, technological advancement in other countries is not equal to the United States. Weaknesses in IP security can not only be dangerous and a massive financial risk, but also impact the speed of business processes.
The Biggest Issues with Your MSP Outsourcing Your Work Is……
Legal disputes. Clearly, other countries abide by different laws and rules. For this reason, it is difficult to hold the offshore companies accountable. Understandably, this can pose a huge problem if they are given access to client domains, intellectual software code, network passwords, etc. Therefore, it is especially important to ask if your MSP is using an offshore company to do any of your IT work.
The Problem for America!
I am actually writing this article at home during the Coronavirus shutdown. Today, nearly 30 Million people have lost their jobs because of this epidemic. That’s why I believe, now more than ever, it is important to hire locally. Clearly, we are all part of the supply chain. Americans have to make money to spend money. So why send our money overseas?
In the same way, why would you want to work with a company that outsources overseas if you don’t get the cost savings? Further, why risk all the legal implications with offshore services and receive subpar services? Instead, use a company that only hires locally and supports your community. You will have better communications and better service. In addition, you will be able to verify their work quality with other local companies.
INSI ONLY Hires Atlanta-Metro Engineers
INSI supports our local community by hiring Atlanta Metro engineers, partnering with Atlanta-Metro companies, and giving back to the local community. Most important, we do not outsource any engineering work overseas.
Do You Want To Learn More About IT Outsourcing and What to Watch Out For?
Go here to see the various types of IT support, their pros and cons, and great questions to ask the provider on each one.
In addition, if you would like to know more about this topic and how it affects you, visit Amazon or Barnes & Noble for a copy of the book IT Outsourcing Secrets – A Small Business Guide to Comparing IT Support Companies.