Impact of Outsourcing on Employees

Impact of Outsourcing on Employees

In this digital age and era, finding employees is not as challenging as before. Companies have many possibilities, from in-house to work-from-home employees. Yet, in the last few years, the impact of outsourcing on employees has been greatly felt.

Outsourcing is an excellent practice that many companies should consider. However, the process has its ups and downs. As outsourcing experts, we will be honest about the positive and negative effects of outsourcing on employees so you can make the right business decision.

Let’s find out whether your company will benefit from this bold step and collaboration with us from CLICKVISION BPO.

Positive Impact of Outsourcing on Employees

Outsourcing can have positive and negative impacts on employees. Generally speaking, the positive effects outweigh the negative ones.

However, it is important to understand the impact and weigh the pros and cons for your business situation. The positive impact of outsourcing on employees ranges from an environment that allows your employees to develop their skills and career growth to building a more stable job for the valuable workers.

Opportunity for skill development and Growth

Using our services at CLICKVISION BPO will reduce the burden on your current employees regarding the non-core functions. Did you know that healthcare professionals spend around 35% of their time documenting patient data?

Considering the time needed for administrative work, there is almost no time left for the skill development and growth of the expert staff. So, you can outsource the non-clinical or non-core functions as a part of the organization management team.

By partnering with an outsourcing company like CLICKVISION BPO, you will open more opportunities for the professional development of your staff. They will have more time and energy to learn about new technologies, processes, and working methods.

Investing in outsourcing frees up resources within the organization so it can focus on higher-value tasks and strategic initiatives. Your employees can redirect their efforts towards areas where their skills and expertise are most needed: their patients or clients.

Saving money and investing it in your employees

In addition to the previous positive impact of outsourcing on employees, your organization will save money while having access to specialized expertise. Our clients choose us for their outsourcing projects because of the cheaper labor and our experts in specific fields.

If you decide to outsource, you may lower your expenses by up to 88%. With so much money saved, you can allocate some of it to your employees.

Overall, you will be taking advantage of a win-win situation. You might have increased productivity of your outsourced business operation and still cut down major expenses. At the same time, you will have more resources to focus on your core areas.

Saving money and investing it in your employees

Source: / Photo Contributor: tsyhun

Increased job security for valuable employees

Your staff will have more time to concentrate on their areas of expertise if you outsource some of their work. They will start to use their skills and knowledge for strategic and high-value activities within the company.

With such a place in the organization, it will be easier for you in the management position to recognize every employee’s skills, contributions and value. This leads to increased job security for every valuable employee in the company.

In addition, outsourcing can create new job opportunities within the company. For instance, you can reward your hard-working employees by promoting them to leadership, management or coordinating roles for the outsourcing projects.

Negative Impacts of Outsourcing on Employees

There are also negative impacts of outsourcing on employees. They start with potential job losses, low employee satisfaction rates, and difficulties communicating with the outsourcing service producer.

Job loss and unemployment rate

While some employees secure their jobs when their company starts outsourcing, job loss is also possible. Typically, companies decide to outsource big sectors in their organization.

If you already have employees doing the tasks you plan to outsource, you have to think about what to do with your current employees. Deciding to terminate their contracts will increase the unemployment rate. 

Also, job opportunities could decline within specific industries because companies can get highly educated employees at lower rates. However, there is a way to avoid this negative impact of outsourcing on employees. Alternatively, you can reposition some or all of the employees to other roles within the company.

Decreased employee well-being and satisfaction

If you don’t present the idea of outsourcing to employees correctly, you might suffer from decreased employee well-being and satisfaction. The negative impact of outsourcing can be somehow limited if you include your current employees in the process.

We highly recommend talking with your staff about your intentions. Take some time to emphasize the benefits your employees will enjoy when you outsource. Be open to answering all of their questions and concerns.

If you avoid the importance of the above-mentioned steps, you will likely start seeing low employee satisfaction rates. Neglecting such things may reduce employee morale and lead to job insecurity, prompting employees to seek another company or career change.

Communication issues in outsourced work environments

If you don’t choose your outsourcing service provider wisely, your company might have potential challenges in communication. The issues might arise because of the following:

  • Language and cultural barriers
  • Time zone differences
  • Lack of face-to-face interaction
  • Technology issues
  • Misalignment of expectations and similar.

On the bright side, these communication caps in outsourcing can be easily addressed by:

  • Establishment of clear communication protocols 
  • Leveraging technology and collaboration tools to facilitate communication
  • Setting appointments for regular updates and feedback sessions
  • Enhancing dialogue and collaboration

Challenges Faced by Outsourced Workers

To fully understand the impact of outsourcing, you should also get familiar with the challenges the outsourced workers face. Since we care about the work experience of our employees at CLICKVISION BPO, here are the challenges we strive to overcome:

  • Limited career advancement opportunities
  • The feeling of potential exploitation
  • Possible unfair treatment
  • Isolation of workers when they work remotely
  • Work-life imbalance, typically because of the time zone differences
  • Dependency of the work assignments, schedules and compensation on the client
Challenges Faced by Outsourced Workers

Source: / Photo Contributor: prostooleh


The impact of outsourcing on employees is multifaceted. It has both negative and positive aspects. 

If your company is thinking about outsourcing any of its work, you should approach the notion with an open mind and accurately. Book an appointment with us so we can solve every dilemma you have left and provide you with examples of why you should be our next client.

With a strong background in the marketing industry and healthcare leadership roles, Filip is responsible for CLICKVISIONBPO's sales strategies and onboarding new clients. With a passion for sharing insights gained from his experience, he also shares valuable knowledge through industry related articles.

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