subject: Benefits and Disadvantages of Outsourcing [print this page] We find that outsourcing has pervaded all spheres and the overpowering presence of outsourcing cannot be denied. Many companies have outsourced some or all of their work to third party providers or to remote companies in India, China, Mexico or Philippines to make the work cost-effective and convenient. Along with the many advantages, the disadvantages of outsourcing cannot be ignored. Both the benefits and disadvantages of outsourcing need to be taken into consideration by companies for smooth, worry-free work.
Benefits of Outsourcing Work
Better handling of all aspects of a particular business ensuring better efficiency
Time frames are adhered to as more employees are working full time
Expert and trained manpower takes care of the outsourced work
Cost of office infrastructure in terms of office size, furniture, amenities reduced drastically
Hiring and training of qualified people to do the job is not required
Tax rebates and benefits as the size of office is small and employees are less
More manpower can be hired at very low rates reducing the cost and increasing the productivity
Company employees have more time to focus on core issues
Disadvantages of Outsourcing Work
Direct control over the work done is lost
Use of third party providers would mean lack of focus
Confusion in perspectives could lead to inferior quality of work
Security threat exists as sensitive data needs to be shared with the third party providers
No control over the people doing the work
Customers may feel let down
Outsource to a Reliable Provider
The best idea would be to outsource but with care as the benefits and disadvantages of outsourcing cannot be ruled out. Finding a good provider who offers quality work in a practical time frame while being cost-effective would suit the needs.
