What Arguements And Alternatives Could You Present That Might Dissuade The Company From The Move To Out Source
Posted by China Sourcing CommentatorJul 31
what arguements and alternatives could you present that might dissuade the company from the move to out source?Iss offshore outsourcing an inevitable necessity?
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The disadvantages of outsourcing include the following:
· Loss of managerial control, because it is more difficult to manage outside service providers than managing one’s own employees working possibly in the same building.
· Often the hidden costs are difficult to calculate or prepare for. These include legal costs related to putting together a contract between two companies and the time spent to coordinating the contract.
· Another disadvantage of outsourcing can be a threat to security and confidentiality. If your company is outsourcing processes like payroll, medical transcriptions or other confidential information, a company must be very careful in choosing which process it wants to outsource and to which provider.
· A possible loss of flexibility in reacting to changing business conditions, lack of internal and external customer focus and sharing cost savings may also be a disadvantage of outsourcing.
· Other disadvantages of outsourcing may include unfavorable contract lengths, loss of competitive edge, problems in contract renewal, and contractual misunderstandings.