The good and bad outsourcing

The good and bad outsourcing

Outsourcing is an assignment of certain tasks to freelancers or other companies by bosses or entrepreneurs. The objective of outsourcing is not just to reduce the work load and free up more time from the bosses’ perspective but most importantly, to cut cost by hiring people outside the company on an ad-hoc basis.

In today’s economy, outsourcing has increased exponentially to a level that has sparked debates as to whether there should be nor should not be too much outsourcing of jobs. While most entrepreneurs have it all to their workload and time for their families and loved ones to be free, some unions are often against them.

Which side are you on, outsourcing certainly provides a variety of benefits including:

Cost savings

Most companies manage to minimize costs and maximize profits.

For example, the manufacturer can reduce its expenditure for the purchase ofessential parts they need and easily assembled.

Quality control

By outsourcing, companies have to develop pools of expertise and have easier access to intellectual property and sustainable source of skills.

Moreover, the quality control avoids the lengthy process of training to the particular services in-house developed.

Finally, with new levels of service to its contacts, companies will be ableensure that the quality is not compromised and remains. These agreements usually contain penalties or legal problems because of the transgressions.

Benefits associated time

The services are possible and at any time due to the fact that they implemented all over the world, regardless of time zones.

When organized by the United States is out of operation, the organization can take over from Japan. Once these measures are implemented, a product can be developed and brought into circulation in a hurrybecause of outsourcing.

The automobile company we mentioned earlier can keep stock on various car components in their warehouse and get relevant staff to assemble them. They do not need to waste too much time manufacturing parts and always be at hands in their depots.

On the contrary, unions protested that outsourcing can cripple a local workforce by reducing jobs for locals. This usually happens when services performed in local companies are now relocated overseas, in certain countries, specializing in cheap labor.

If there is competition for jobs, reduce unemployment, labor costs, which will surely affect the country’s economy.

In addition, language differences and harmful to the quality of the service. Services are from places with different language and culture, will do more damage.

Since the data is transferred from one place to another, and can occur even misuse of information. As in the case of bank accountsmanipulated when call centers came into the possession of the customer accounts.

Apart from external sources, the unions argue that outsourcing companies outsource as unproductive, rather than buying software to automate the entire process and save twice as much time and money spent on outsourcing will be.

In short, here are the pros and cons of outsourcing. Therefore, the decision to outsource or not still owned by the company or an individualEntrepreneurs.

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