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For the last few years people are arguing about the problem of outsourcing. Outsourcing is an allocation of specific business processes to a specialist external service provider, usually in Asia. Outsourcing most commonly known as offshoring has pros and cons to it. The main question: do advantages of outsourcing overshadow the disadvantages or not?
One people say there are some advantages of outsourcing. Firstly, it is concentrating on core process rather than the supporting ones. Outsourcing the supporting processes gives the organization more time to strengthen their core business process. Secondly, it is swiftness and expertise. Most of the times, tasks are outsourced to vendors who specialize in their field. Effectively the tasks can be completed faster and with better quality output.
Others say there are some disadvantages of such practice. To begin with, there is a risk of exposing confidential data. When an organization outsources HR, Payroll and Recruitment services, it involves a risk if exposing confidential company information to a third-party. Moreover, it may lead to some problems with synchronizing the deliverables. In case you do not choose a right partner for outsourcing, some of the common problem areas include stretched delivery time frames, sub-standard quality output and inappropriate categorization of responsibilities.
I cannot completely agree with them. One of the most crucial factors determining the outcome of a campaign is risk-analysis. Outsourcing certain components of your business process helps the organization to shift certain responsibilities to the outsourced vendor. Since the outsourced vendor is a specialist, they plan your risk-mitigating factors better.
With all these pros and cons of outsourcing to be considered before actually approaching a service provider, it is always advisable to specifically determine the importance of the tasks which are to be outsourced.