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Advantages And Disadvantages of Outsourcing


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:

  1. Operational cost or the production cost of any product is reduced by outsourcing.
  2. The recruitment cost is reduced by outsourcing.
  3. The task can be completed faster by recruiting experienced person by outsourcing.
  4. Efficacy, productivity and quality of product is increased by outsourcing.
  5. Bulk production can be achieved by outsourcing. 
  6. Customer satisfaction is achieved by outsourcing.

Some Disadvantages of Outsourcing are:

  1. Sometimes customer care service is outsourced to a country that speaks different language. Dissatifaction for customers is observed.
  2. Sometimes employee of an outsourced country may not have complete knowledge about organization and may not work as effectively as needed.
  3. Lack of customer focus is observed.
  4. If outsourcing parter is not proper then there are chances of loss in a business.
  5. Sometimes hidden costs and legal problems may arise if the terms and conditions of business is now well clearly defined.
  6. Quality of product is affected if the person is inexperienced.


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