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Question
What are the disadvantages of outsourcing?
Solution
Disadvantages of Outsourcing/Limitations of Outsourcing
- Lack of customer focus-
An outsourced vendor may be catering to the needs of multiple organizations at a time. In such a situation, he may lack complete focus on an individual organization.
As a result, the organization may suffer. - A threat to security and confidentiality -
The confidential information of the organization may be leaked to the third party, so there are security issues. - Dissatisfactory services -
Some of the common problem areas with outsourcing include stretched delivery time and substandard quality. - Ethical issues -
The major ethical issue is taking away employment opportunities from one's own country when the function is outsourced to a company from another country. - Other disadvantages -
i) Misunderstanding of the contracts.
ii) Lack of communication.
iii) Poor quality and delayed services.
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The process of contracting a business function to specialized agencies is known as outsourcing.
With the help of outsourcing company we can focus on the core areas.
