preview

Essay about The Avantages of Outsourcing

Good Essays
Outsourcing is a business strategy that moves through a number of functions, processes, activities and decision responsibility from within an organization to outside providers, in order to reduce the costs of an organization. This is done through negotiating contract agreements with a vendor who takes on the responsibility for managing it. The decision to outsource is a major strategic most company, since it involves weighing the potential cost savings against the consequences of a loss in control over the products or services.
Outsourcing allows companies to focus on their core business and can create a competitive advantage by reducing their operational costs. Outsourcing is that companies can outsource the entire function or just part
…show more content…
The advantages of having a vendor contract are they are bound to certain levels of service and quality. Example of this customer satisfaction is an IT function is outsourced and the technician calls in sick, it is the responsibility of the vendors to find someone to replace them.
Disadvantages of outsourcing are quality risk, quality service, language barriers, and legal compliance and security. First of the advantages is a quality risk, quality risk is an outsourcing can expose the companies to potential risks and legal exposure.
Secondly is a quality service. Quality service is a service that outsourcing provided to do the vendor. The quality service can be reporting as poor or good service. Some of contract are written and can leave service levels out to save on costs. A third disadvantage is a language barrier. This is be a major factor because when customer call the center of the outsourced to a country that speaks a different This is be a major factor because when customer call the center of the outsourced to a country that speaks a different language, customer cannot understand what are there are saying and customer cannot dealing with them properly.
Next is a legal compliance and security. It is important that issues regarding the legal compliance and security be addressed in formal documentation. Example of this outsourcing the IT function is their access to confidential customer data for their own gain.
Information Technology Outsourcing is defined
Get Access