Some of the Advantages and Disadvantages of Outsourcing are given here. So let us find out some of the advantages and disadvantages one by one.
Some Advantages of Outsourcing are:
- Operational cost or the production cost of any product is reduced by outsourcing.
- The recruitment cost is reduced by outsourcing.
- The task can be completed faster by recruiting experienced person by outsourcing.
- Efficacy, productivity and quality of product is increased by outsourcing.
- Bulk production can be achieved by outsourcing.
- Customer satisfaction is achieved by outsourcing.
Some Disadvantages of Outsourcing are:
- Sometimes customer care service is outsourced to a country that speaks different language. Dissatifaction for customers is observed.
- Sometimes employee of an outsourced country may not have complete knowledge about organization and may not work as effectively as needed.
- Lack of customer focus is observed.
- If outsourcing parter is not proper then there are chances of loss in a business.
- Sometimes hidden costs and legal problems may arise if the terms and conditions of business is now well clearly defined.
- Quality of product is affected if the person is inexperienced.