Disadvantages of Outsourcing
Along with the pros of outsourcing, there are also some cons associated with the term. Outsourcing is not beneficial in all cases and situations. In some situations, outsourcing may be more of hazardous to the organization rather than advantageous. This is the reason why pros and cons must be weighed before the decision to outsource is made.
“A disadvantage to outsourcing is that you are putting part of your company in someone else’s hands. You have to ask yourself if you can trust them, if you think they’ll stay in business and if they can adapt to your growing/changing needs.”
It had been discussed above that outsourcing means providing another external company with the reins of management for that particular function. This could be a difficult decision for the organization and must be made tactfully and with complete benefit/ cost analysis. It is a tough decision to make whether the organization can afford outsourcing or not.
There have been certain companies that have faced with the danger of fraud within the organization by the outsourcing team. “Outright fraud is also a concern. In 2005, Intel discovered and fired 250 Indian employees after they faked their expense reports. The firings followed from Intel’s internal Business Practice Excellence program of expenses claims.”
Another issue with outsourcing is that of quality. Quality is an attribute that can only be reached if the expectations of a customer are met completely and satisfactorily. It is a major point that6 is considered when producing a product or a service to the custoemr or any other organization in order to keep the name of the recognized as a reputable one.
“Criticism of outsourcing from the public and media sometimes tend to concentrate on lackluster customer service and technical support being provided by either local workers who are not actually employees of the company, or by overseas workers attempting to communicate with Americans in broken or incomprehensible English.”
The above quotation shows that the company needs to make sure that the outsourcing team it is employing must be capable enough so that neither the suppliers nor the customers must be ignored in any way. The value chain of the organization must be streamlined and must have obstacles in the way.
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