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Advantages and Disadvantages of Outsourcing

If Outsourcing has presented itself as a possible solution for you and your company, it is natural to weigh the advantages and disadvantages before embarking on a partnership. Gain insight into the good and bad of outsourcing to help you decide if outsourcing is right for you. Here we break down the possible advantages and disadvantages of outsourcing.

The Advantages of Outsourcing

• Outsource your non-core activities and spend more time concentrating on your core business processes.
• Offshoring gives you access to professional, expert and high-quality services.
• Your organization can experience increased efficiency and productivity in non-core business processes.
• You can streamline your business operations.
• Offshore outsourcing can help you save on time, effort, manpower, operating costs and training costs, giving you overall cost advantage.
• Outsourcing can make your organization more flexible to change.
• Experience increased control of your business.
• Save on investing in the latest technology, software and infrastructure and let your outsourcing partner handle the entire infrastructure.
• Get the assurance that your business processes are being carried out efficiently, proficiently and within a fast turnaround time.
• Offshoring can help your organization save on capital expenditures.
• By outsourcing, your company can save on team management problems as your offshore partner will be managing the team who does your work.
• Cater to the new and challenging demands of your customers.
• Free up the cash flow of your company.
• Share your business risks.
• Give your business a competitive advantage - increase productivity in all the areas of your business.
• Outsourcing can help your organization cut its operational costs by 50% if not more.

If you want your organization to stay ahead of competition, concentrate on core competencies and make use of the latest technologies, then outsourcing can help your organization achieve all this and more. The advantages of outsourcing far outweigh the disadvantages. Many organizations across the globe have made the choice to outsource and experience the benefits that it has to offer. More than 500 customers around the globehave and are taking advantage of outsourcing by using the services that Global Outsourcing agency offers.

The Disadvantages of Outsourcing

• While outsourcing services such as payroll processing services and tax preparation services, your outsourcing provider will be able to see your company’s confidential information and hence there is a threat to security and confidentiality in outsourcing.
• When you begin to outsource your business processes, you might find it difficult to manage the offshore provider when compared to managing processes within your organization.
• Offshoring can create potential redundancies for your organization and your employees might express lack of interest or lack of quality at work.
• Your outsourcing provider might not be providing services only for your organization. Since your provider might be catering to the needs of several companies, they will not be able to give your company 100% attention.
• Outsourcing, though cost-effective, might have hidden costs, such as the legal costs incurred while signing a contract between companies. You might also have to spend a lot of time and effort in getting the contract signed.
• With outsourcing, your organization might suffer from a lack of customer focus.
• There can be several disadvantages, such as, renewing contracts, misunderstanding of the contract, lack of communication, poor quality and delayed services amongst others.

But all of these disadvantages can be avoided by partnering with the right service provider. Before outsourcing, take the interests of your customers and employees into consideration and then make an informed decision. If your organization is genuinely interested in outsourcing, don’t let the fewer disadvantages stop you.

Still not convinced? Global Outsourcing Agency offers PILOT TRIAL PROGRAM on some services. Contact us and our Business Development Team will get in touch with you within 24 hours.