Business Outsourcing: Hurting or Helping Business Growth?


In the October 6-12, 2017 issue of the Providence Business News, Eli Sherman wrote a well-researched piece on outsourcing titled “Outsourcing helps keep businesses competitive, but is it hurting job growth?” Let’s explore that question.

A business has two options when it comes to staffing its company: either hire the talent with W-2 employees or contract with an outsourcing firm like Peak Support (https://peaksupport.io/services/customer-service/) that tends to specialize in the needed skills. The article seems to equate this popularity in outsourcing with the stagnant job growth here in Rhode Island. It states, “the dynamic has helped create a leaner, more-efficient business community. But it is also putting downward pressure on the state’s ability to grow jobs, as fewer people, in many cases, are doing the work once done by many.” As an owner of a company that provides outsourced IT services to SMBs, and that also contracts with an outsourced marketing firm, I just don’t find the connection between outsourcing and fewer jobs.

By outsourcing some or all of their IT department functions, our clients are able to focus on their core competencies while enjoying the peace of mind that comes with a team of experts handling this essential role. At NetCenergy, we practice what we preach by engaging with an outside marketing firm similar to this SEO reseller to handle and consult in our marketing functions. Not being distracted by an in-house marketing team allows us to grow more tech and sales jobs, and our growth makes up for much more than the jobs “lost” to outsourcing. I would suggest, rather, that Rhode Island’s anemic job growth (as quantified in the article) has more to do with RI’s well-documented unfriendly business climate than the fallout from outsourcing versus hiring W-2 employees.

NetCenergy is in the business of providing efficient IT services performed by technicians and engineers that are highly-trained, certified, and experienced. With that job handled, our clients can grow jobs. In the same vein, as our clients grow their core competencies, NetCenergy continues to grow tech jobs by outsourcing our non-essential functions, like marketing. It’s hard for me to see where there are any losers.

If you’re not outsourcing your IT department, check out our eNCompass managed services product. We partner with our clients to give them the peace of mind that their information is secure and managed by a team of experts.

Authored by Donald Nokes