Assignment 4 Outsourcing

277 words - 2 pages

When it comes to outsourcing, there are often many advantages as well as disadvantages.  A few key points that I researched about both sides when it comes to outsourcing:

Advantages of Outsourcing
Outsourcing allows management to defer the details to a specialized company. Removing the details allows management to focus on the larger issues within the organization. Typically, the specialized company that handles the outsourced work boasts technological capabilities superior to the ...view middle of the document...

I believe that outsourcing was a very good thing for organizations when they first started doing it; however, many companies today have cut corners with outsourcing and have suffered because of it.

Disadvantages of Outsourcing
Outsourcing reduces or completely eradicates direct communication between organizations and clients. Limited communication impedes the relationship building process, which may lead to the overall dissatisfaction of the organization and client. The outsourcing organization loses complete control over all areas of the company. Project implementation timelines may suffer as a result. If the organization terminates the agreement with the outsourced entity, confidential, sensitive information becomes jeopardized (Meehan, 2012). I believe that communication is everything and with outsourcing today, the control of solid communication is something that can suffer.

Overall, having a well organized, strategic outsourcing strategy can be beneficial to an organization in my opinion. They key to outsourcing is planning and having a well thought out idea of what the company intends to accomplish when outsourcing.

Meehan, C. L. (2012, January 1). Advantages & Disadvantages to Outsourcing. Retrieved October 15, 2012, from Chron: http://smallbusiness.chron.com/advantages-disadvantages-outsourcing-it-764.html

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