Advantages and Disadvantages of Outsourcing

Hi I am back again …. To give you more information on outsourcing . In my first blog I told you about outsourcing now I will tell you about various advantages & disadvantages of outsourcing…
Ogranizations who want to perform outsourcing must be aware of prons and cons of outsourcing. Most companies are not aware of it but still they jump in this business. Before starting with offshore business lets have a look on the various advantages and disadvantages of outsourcing.

Advantages of Outsourcing

• Outsourcing gives you access to professional and better services.
• Off shoring of non core activities of your company give you time to concentrate on other important things.
• It helps to increase the efficiency of your business.
• It helps you to streamline your business more efficiently.
• It provides more flexibility to your business.
• Outsourcing of non core activities help you to increase productivity of non core processes.
• Profits made due to off shoring can be utilized on latest tools and technologies.
• It helps you to save time, man power and operating cost involved with business.
• It gives competitive edge to the business.
• It can cut operational cost to half.
If you want that outsourcing should help you then concentrate o9n the above mentioned points and it is sure to help you and your business.

Disadvantages of outsourcing

• It is most cost effective way to conduct your business then outsourcing it.
• It can be difficult to manage with offshore provider as compared to0 managing processes at your end.
• Outsourcing provider can come to know your company’s confidential information if you are outsourcing services such as payroll processing services and tax preparation services.
• You can loose control on the outsourced product.
• Outsourcing, though cost-effective, might have hidden costs, such as the legal costs incurred while signing a contract between companies
• The employees in your organization might not like the idea of you outsourcing your processes and they might express lack of interest or lack of quality at work
• By outsourcing, you might forget to cater to the needs of your valuable customers as your focus will be on the business process that is outsourced
These are the various drawbacks of outsourcing you need to be very care ful while outsourcing your business. And should keep above points in your mind.

On my upcoming post I will tell you more about outsourcing and various methods involved in it.

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