What Are The Advantages And Disadvantages Of Outsourcing

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The concept of outsourcing originate from the American terminology “outside resourcing”, meaning to get resources from the outside.1
Outsourcing refers to hiring an outside, independent firm to perform a business function that internal employees might otherwise perform. Many organizations outsource jobs to specialized service companies, which frequently operate abroad. The outsourcing trend stands to continue; the latest wave of outsourcing impacts the information technology field. IT outsourcing includes data center operations, desktop and help desk support, software development, e-commerce outsourcing, software applications services, network operations and disaster recovery.2
Outsourcing is often oversimplified and emotive, based on the strength
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There are also several disadvantages to outsourcing agreements, which include becoming dependent on an outside supplier for services, failing to realize the purported cost savings from outsourcing, locking into a negative relationship, losing control over critical functions, and lowering the morale of permanent employees.
Executive management is increasingly recognizing that sometimes the disadvantages of outsourcing outweigh the advantages, even after an agreement has been signed. Many companies are canceling their outsourcing agreements, or deciding to hire their own staff to provide in-house services once again.7
According to a research, many companies feel that the cons outweigh the pros and that this type of business practice should not be considered anymore. It also can give the persona that a company is trying to cut corners and costs, which in turn, can look cheap. It can take away from the essence of the feel of a company. People want the special touch and do not want to be another face in the crowd. Outsourcing adds more distance between the guest and the
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