Outsourcing Advantages and Disadvantages

Outsourcing Advantages and Disadvantages

In today’s world, outsourcing is a revolutionary thing. Outsourcing can provide you with different advantages. But for that, you will need to do it right. The paths of outsourcing are not smooth but rather filled with a lot of difficulties. If you have a company, then it is nothing but a “make or buy” decision as applied to the technology functions and information systems of your company. There are some questions involved in this process. These are as follows:

1. Should your company acquire its own facilities?

2. Should your company develop its own systems?

3. Should your company maintain its own hardware?

4. Should your company develop its own documentation?

5. The most important question is that, should your company do all the above things on own or should it contact some outside organization for these purposes?

The answer of these questions are very much important. The whole outsourcing depends on these questions. If you can solve these questions successfully, then you can also be successfully in outsourcing.

As said earlier, there are a lot of challenges in outsourcing. Still the future of outsourcing looks very bright. Some of the positive sides of outsourcing are as follows:

1. Improved performance and service.

2. Expert staffing as well as resources.

3. Development cycles of shorter systems.

4. Management control of better quality.

5. Elimination of staff problems.

6. Reduced or stabilized costs.

7. Probable “tax” advantages.

But as you know, there are also negatives of every good thing. Despite of the above positive sides, you should also know the following negative sides also:

1. Problems of contract termination.

2. Inflexible contracts that limits your ability to accomplish the stated as well as changing business strategies and objectives.

3. Losing control over your key information resources.

4. Ineffective project or corporate management. Such a management is not in any way better than you to run the business.

5. In-house expertise loss.

6. Interest conflict.

7. The famous nickel and dime syndrome.

So you can see that along with advantages, there are disadvantages too. It is up to you how to cope with it. If you want to be successful, you will need to stick to the positives and get the best out of it. Only then you will be able to achieve success in the outsourcing world. Remember, the path is success is never smooth in any field; but determination and hard work can defeat the odds and make you the winner.

Source: EzineArticles
CATEGORY: Useful Articles

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