Advantage And Disadvantages Of Outsourcing

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Berg and Stylianou (2009) told that, Outsourcing has been defined as "the use of external agencies to process, manage, and maintain internal data and to provide information services whether off shored or operated domestically" (Berg and Stylianou 2009, p.236).
Outsourcing is a long-term, result-oriented business relationship with a specialized service provider. Outsourcing is easily defined as the execution of a business process to an external service provider.
There are so many reasons for outsourcing which is the better service, improving organisational efficiency, access to new technology, reduced IT cost, & an ability to refocus in-house staff on higher-value work. The outsourcing option has two main types, first one is
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Cost reduction and improved efficiency: Reduced Costs from Outsourcing
One of the main reasons companies will consider outsourcing is the overall reduced costs. Outsourcing provides a more efficient approach in controlling production costs. Costs per additional employee include salary, overhead, equipment, training or education, other supplies, and possibly facility costs. Another cost savings quality is in overall Human Resources, as outsourcing eliminates costs for next time development of employees, current trainings, recruitment, payroll and benefits.
2. Swiftness and Expertise: Most of the times tasks are outsourced to vendors who specialize in their field. The outsourced vendors have specific equipment and technical expertise, most of the times better than the ones at the outsourcing organization. Effectively the tasks can be completed faster and with better quality product output.
3. Scalability or flexibility: Outsourcing means that a company can stay lean and mean, which makes it easier to adapt to change. For example, companies don't have to invest a bunch of money and resources into a new plant and equipment that may become obsolete quickly. Instead, they can pass that risk off to the outsourcing
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