Disadvantages Of Sourcing Securities

In general, the outsourcing is hiring the foreign workers/company to do a particular task, as opposed to hiring domestic workers/company. Besides the outsourcing, the international purchase is an essential activity of companies. In the trend of a booming global economy, a company only focuses on its core value and hire suppliers to supply the necessary product and service. The relationship between companies are complicated and interdependent.

Specifically, companies are transferring these services overseas as in the case of call and help center services or companies are ordering manufacturing supplies from overseas at a much cheaper price than they could obtain them inside the U.S. Outsourcing is a term that is often used interchangeably with off shoring (Bhagwati, Panagariya, & Srinivasan, 2004).

It is a concept that has evolved from a manufacturing perspective to a strategic perspective, which views the concept as a way for organizations to focus and be more competitive. The basic premise of outsourcing is that a specialist organization can perform a particular service more efficiently than can internal operations because a specialist organization has an inherent advantage in producing and delivering a service. Superior technology, management skills, or economies of scale may contribute to this perception. The type of sourcing relationship depends on whether a long-term or short-term need exists. To save funds used for benefits for regular employees, temporary workers are hired. In this case, the organization (outsourcer) provides all necessary resources except the workers, who are provided by the vendor. For long-term services, the vendor has full responsibility for delivering the service; the outsourcer provides only a liaison.

“Outsourcing refers to the practice of contracting workers outside of a company or business for work duties or services previously performed by company employees or “in-house”. This practice is also often referred to as offshoring due to the increasingly prevalent use of “non-U.S.” service providers for these outsourced duties. However, strictly speaking, outsourcing can and does refer to the use of contracted labor provided by individuals outside of an organization, but still within the U.S.; whereas when these same services are provided outside the U.S., it is both outsourcing and offshoring.”

Outsourcing is when a company purchases products or services from an outside supplier rather than performing the same work within its own facilities, in order to cut costs. In other words, outsourcing is an organization's contractual relationship with a specialized outside service provider for work traditionally done internally by that organization. The decision to outsource is a major strategic one for most companies because it involves weighing the potential cost saving against the consequences of a loss in control over the product or service. Some common examples of outsourcing include manufacturing of components, computer programming services, tax compliance and other accounting functions, as well as payroll and other

Job outsourcing is the shifting of a business from one country to another. Companies may choose to outsource or offshore for a number of reasons, perhaps they are trying to save money on taxes or increase productivity in the company.

Over the last decade, outsourcing has become a popular political debate topic in the United States. Outsourcing, typically used by firms as a way to lower costs, is the process of assigning work to an outside agency. Despite statements that outsourcing saves a significant amount of money for U.S. companies, not only does outsourcing have consequences both on the U.S. as well as on the other countries involved, but also more recent studies show that the amount of money saved for companies has decreased significantly.

As companies look for ways to strategically perform better in their respective industries many chose to outsource job functions. Outsourcing allows companies to grow and expand their business around the world. Many have attributed outsourcing to lowering operating costs, a method to increase expertise and gain additional technology, and as a way to improve efficiency and services. These advantages can help a company gain a competitive advantage over industry participants. When a company strategically plans to outsource ethical consideration must be acknowledged; especially when outsourcing is offshore.

One of the most important forces of outsourcing is that organizations do not have gain the needed and required sources internally. And they have a difficulty in integrating and attracting expertise, where outsources own capabilities on a global level, modern technologies and other required resources. Also, by outsourcing the cost of keeping employees and consultants for short term is reduced. Furthermore, outsourcers are able to offer better career opportunities for business IT staff if they decide to transit to the outsourcer. As the manager of BP Company viewed the main reason of BP Company outsourcing is that "it has become increasingly apparent that service companies provide us with technical skills and ideas that we could no longer develop inside our own company" (Kremis, 2006).

A common definition of outsourcing is the takes part of their business and give it to another company to complete. The main industries that take

Outsourcing alludes to pleasing or moving a section or the greater part of the organization day by day operation and business procedure to an outer business supplier. This organization has chosen to outsource administrations with the desire of getting a charge out of lower rates, better quality, and that feeling of securing a key edge over rivalry.

The concept of outsourcing originate from the American terminology “outside resourcing”, meaning to get resources from the outside.1

Liabilities arising in respect of wages and salaries, annual leave, sick leave and any other employee benefits expected to be settled within

Security outsourcing is the contracting of the security function of an organization to third party firm. Simply put, employing outside organization or personnel who are not internal staff of the organization to carry out security activities of the organization. This has its merits and demerits:

Ans :- Outsourcing is also known as business process outsourcing, through which a company can heir either an individual or another company to handle your business .This individual or company can be both individual or international. Due to this process one can hand over responsibility of some or all of an organization’s information systems applications and operations to an outside firm.