Advantage and Disadvantage of Offshore Outsource

Topics: Outsourcing, Management, Business process outsourcing Pages: 3 (599 words) Published: November 9, 2012
Benefit of the Offshore Outsource

1) Improve the customer service

Using high-quality specialist external providers can allow companies to capitalize on their strengths and, indirectly, help to improve customers’ experience of using such companies’ products or services. External providers can help a company’s competitiveness by delivering greater flexibility and responsiveness than would be available in-house.

2) Swiftness and Expertise

Most of the times tasks are outsourced to vendors who specialize in their field. The outsourced vendors also have specific equipment, technical expertise, better experience and skills. Most of the times better than the ones at the outsourcing company. Effectively the tasks can be completed faster and with better quality output.

3) Concentrating on core process rather than the supporting ones

Outsourcing the supporting processes gives the company more time to strengthen their core business process. The company will have more time to put more effort, develop ideas and plan the strategies on the core business activity.

4) Risk-sharing

Usually the main factors to outsource the company is risk-analysis. Outsourcing certain business activity process helps the company to shift certain responsibilities to the outsourced vendor. Since the outsourced vendor is a specialist, they plan your risk-mitigating factors better and recommend several method to improve the operations.

5) Reduced Operational and Recruitment costs

Outsourcing prevent the need to hire individuals in-house; hence recruitment and operational costs can be decreased to a great extent. This is one of the prime advantages of offshore outsourcing to make the company operation cost-effective.

The Disadvantages/ Weaknees of Offshore Outsourcing

Even though offshore outsourcing gives advantage mainly on cutting the cost site but the other way offshore outsourcing sometimes bring disadvantage to the company. A company must identify what is the...
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