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Advantages and Disadvantages of Outsourcing

Outsourcing Has Pervaded All Modern Spheres

The overpowering presence of outsourcing in the modern world cannot be denied. Outsourcing work to the countries where labor is cheap, like India, Mexico, Philippines and China, has become the present day order. The services outsourced include medical and legal transcription, data entry, medical review writing, medical billing and coding, legal scoping, call center and recruitment support, content writing with search engine optimization and the like. Here are some of the advantages and disadvantages of outsourcing.

Advantages of Outsourcing

The many merits of outsourcing include:

  • Businesses are handled effectively and the efficiency is greatly enhanced
  • Time schedules are followed better when work is allocated
  • Tax rebates and benefits
  • Trained manpower takes care of most needs
  • Cost of hiring qualified people is very less
  • Investment in resources, expertise, technology and other requirements is greatly reduced as the outsourcing provider takes care of these issues
  • Productivity increase is substantial as more manpower is available and can be hired at reduced costs
  • Greater productivity takes care of competition
  • Core competencies can be given more focus
  • Business risks are shared

Disadvantages of Outsourcing

Let us take a look at the other side of the coin too. The disadvantages of outsourcing would be:

  • No control over the manpower that is not local
  • Loss of jobs for local employees
  • Services could be delayed as via media exist
  • Confusion in ideas leads to wrong work being done
  • Outsource provider may have hidden costs in contracts
  • Possible security threat as confidential information is disclosed
  • No direct control over the work done
  • Customer needs may not be fulfilled

Take Both Sides in View When Outsourcing

The advantages and disadvantages of outsourcing will always have to be taken into consideration. Finding a good outsource provider with tried and tested methods could be definitely worthwhile when outsourcing work.

About Rajeev R

Rajeev R

Manages the day-to-day operations of MOS from NY. With an interest in information technology, Rajeev has guided MOS to extensive use of digital technology and the internet that benefits MOS as well as MOS clients.