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Pros and Cons of Outsourcing by Fabiola Groshan





Pros and Cons of Outsourcing by
Article Posted: 03/17/2010
Article Views: 97
Articles Written: 9448
Word Count: 547
Article Votes: 0
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Pros and Cons of Outsourcing


 
Business
The main premise of outsourcing is to focus on your company’s core activities and leave it to other companies to take care of some or most of the rest. In the context of what is now called a global recession, it makes sense to outsource some business activities to offshore companies, but there are certain factors that any manager or businessman needs to consider before starting the search for an outsourcing company. There are numerous reasons for outsourcing and also reasons not to outsource, and this article will present you with the most important and relevant from both categories. Some of the most important reasons for outsourcing include obtaining reduced operational costs, reduced time and resources for operations and accessing market resources, and numerous others.

First of all, resource costs are cut significantly, and this perhaps is one of the main reasons for outsourcing. You can save up to 35% or even more, depending on your offshore partner. In terms of costs for office spaces, together with everything they entail such as utilities, and even training costs, benefits, and severance you will also be able to save significantly. Other important reasons for outsourcing include full access to existing resources, including man power and operational infrastructure, and the ability to access specific domains and skills without having to hold one interview. Also, outsourcing to offshore companies is the perfect solution for risk management and legacy maintenance.

Other pros or reasons for outsourcing relate to cutting costs related to various processes and obtaining certifications, along with being able to access already available operational expertise. When you sum up all the benefits presented above you might think that outsourcing is the perfect solution regardless of any risks, but the reality is that you can get a lot of headaches even from large outsourcing partners given that you do not take all the necessary precautions and follow strict guidelines designed to protect you from frauds, unprofessionalism, and so on. In this context, here are the most convincing reasons why not to outsource.

The main reasons not to outsource that are presented in all the online articles and magazines refer to a general lack of trust in the concept of outsourcing, already perfected operations, low risk tolerance, and more. For example, if cannot gain the support of company executives or are having trouble getting the needed funding, then there is really no reason why you should consider outsourcing if it would only end up damaging the inner workings of the organization.

Risk tolerance is also one of the main reasons not to outsource. If the company executives or even the field in which the company operates do not allow increased risk margins then offshore outsourcing would not be able to deliver the expected results. Selecting appropriate offshore outsourcing companies is very important to the success of the outsourcing operation, and the lack of a good and effective outsourcing opportunity is also one of the most important reasons not to outsource. The bottom line is that even before starting to search for offshore outsourcing companies, you should ponder well your needs and expectations with what outsourcing can actually bring you.

For more resources about reasons for outsourcing or about reasons not to outsource please review this page http://pragmaticoutsourcing.com/

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