subject: Disadvantages of IT Outsourcing [print this page] Outsourcing to third party providers or to companies in economically weaker countries where labor is cheap, has become very popular in the past decade. This comes with a plethora of benefits which include expert service at low rates. The internet and its advancement have made it possible to have people working from remote locations too. However, one must consider the disadvantages of IT outsourcing before going ahead with the company's outsourcing plans.
The Main Disadvantages of IT Outsourcing
Loss of freedom over management of procedures
Loss of the provision to implement relevant ideas which would benefit the company
Company vision and the third party employee's vision may differ leading to not so relevant work
Sensitive data has to be shared with strangers
Lack of focused attention by third party workers as they have many other companies to cater to at the same time
Lack of personalized commitments as the third party workers will not be as committed as the regular employees
Hidden costs may cloud the previously assumed costs and one may have to shell out more than expected
Improvising the work done by the third party is a regular issue with most IT companies as the quality of work may not be as expected or may have inherent errors.
Reduction in sales and turnover may be expected when the company loses control over the work done
Customer dissatisfaction may lose valuable business as the third party employees may not be able to handle all issues well, having no in-depth knowledge about the company.
An Established Outsourcing Company Will Help to Minimize the Disadvantages
Since outsourcing IT has some decided advantages that are too beneficial to be ignored, one must consider outsourcing only to reputable third party firms. These firms should be open to discussion of all concerns mentioned above for better understanding and improved work quality. The disadvantages of IT outsourcing can be minimized when a reliable outsourcing company is doing the job.
