The Pros and Cons about Outsourcing
The most controversial type of outsourcing occurs when a private company hires a foreign company to do work for it. This outside contracting, known as "offshore" outsourcing, has become more and more common in the past 20 years. There are some negative reasons to consider outsourcing.
The main disadvantage of outsourcing is that the company may lose some control over production; it must rely on some outside entity that is under different management. Instead of dictating how production should be organized, the company must accept whatever organization and management the vendor, the company to whom business is outsourced, chooses. Furthermore there can arise problems with quality if the outsourcing provider doesn’t have proper processes and/ or is inexperienced in working in an outsourcing relationship. While workers across the world can be very competent, the fact is sometimes they lack skills and education. If you need the finest employees, be prepared to pay for them, whether they are in your office or in another country. Even though there are many reasons to do not implement outsourcing, there are also many positive aspects that need to be considered. The most significant advantages of outsourcing include: Initially outsourcing may provide the company with access to more expert employees, more up-to-date technologies and to an unlimited rage of skills without having to hire someone new. The vendor often has highly skilled employees who are specialists in specific areas. Moreover the company can increase productivity by hiring outside workers living in a different time zone. However, it is harder to attract talented employees to work less desirable shifts. This is no longer a problem with outsourcing. Your company can provide service 24 hours a day, with workers around the globe operating in the best shifts available. Finally and definitely not surprisingly, the main reason is to reduce costs. If the company has its own...
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