Difference #3. Independence and dependability.
Service agencies: These companies are usually very independent and in some cases this can be beneficial for the client. If you provide an agency or a sole freelancer with a lot of work, chances are that you can simply hire them at some point and keep your processes in-house, while ensuring that you have the right employee for the job.
On the other hand, being independent means avoiding close oversight. This makes the whole process of outsourcing less transparent and harder to manage.
Having no control over some of YOUR business processes is something that can be unimaginably frustrating for a business owner. You definitely want to keep an eye on your contractors, which means you want to control how you outsource.
These two issues have the same roots.
Outsourcing companies: Big companies are more reliable in many ways. You can definitely control your processes more easily, you will have constant reports, and their dependability and team cohesion will serve you well in terms of overall control.
It is much harder to avoid accountability for a big team of specialists who have an answerable manager. Big outsourcing companies are reliable, cohesive, and depend on each other, thus you can rely on them as well.
At the same time, having such interconnected teams at your disposal is not necessarily a good thing for a small startup.
The relationships are much more formal compared to working with an independent service agency. Simultaneously, you can never expect a solid outsourcer to simply give up their perspectives and work solely for you.
Difference #4. Expertise.
Service agencies: Again, service agencies are often great specialists that concentrate on specific services and skills. This means that you can hope for good expertise when it comes to it consulting and estimating your outsourcing projects.
However, many service agencies will not provide you with overall expertise of the market or consult you about business opportunities. Usually, service agencies have outside business analysts and cannot truly offer you a great deal of help when it comes to issues beyond their specialization.
Outsourcing companies. Big companies usually hire full-time business analysts, marketers, advertisers, designers, developers, etc.
This means that you can definitely receive answers on any questions related to the domain of your contractor and possibly will also receive comprehensive analysis of how they can help you with marketing your business or augmenting it in various ways.
For example, a good software development team that has a business analyst can come up with a good marketing plan for the release and make your application that is much more impactful and useful right from the get-go!
There are various differences between service agencies and outsourcing companies. You should make your choice based on your own preferences and estimated scope of outsourcing.
If you plan to search for a good contractor for a specific job, go for a service agency that specializes in something (i.e. testing, cloud hosting, software development).
If you need to outsource a whole suite of business processes and need consultations, you should definitely work with a big outsourcing company that has resources and expansive expertise.
And if you have any questions or comments please contact us!