What are the advantages and disadvantages of outsourcing
Outsourcing is the leasing of a job or department with a job to another company or set of people. There are many pros and cons of outsourcing and the subject has become quite controversial in recent years. For the originating company, outsourcing is usually an economic benefit. This article provides the advantages and disadvantages of outsourcing.
Corporations that outsource
Within the last ten years alone, outsourcing has become a trend in US corporations, providing many jobs like telemarketing, customer service, sales and even IT positions abroad. India has been a major recipient of US job outsourcing, creating additional jobs in the Indian market which is definitely an advantage. One disadvantage of this is the minimising of jobs in the United States. As those jobs have been outsourced, it has become common to see mass layoffs within the US, increasing the unemployment rate. This is clearly an example of a disadvantage to outsourcing. Another advantage to US corporations outsourcing work is monetary gain. As jobs outsourced cost less due to monetary conversion, companies can save hundreds of thousands in employee salaries.
IT outsourcing
The outsourcing of a company's IT department has especially improved. Information Technology jobs are outsourced in bulk to companies that specialise in picking up the jobs and distributing to a group of IT professionals in other countries who run the day-to-day technical operations. This gives the originating company the advantage of savings thousands on computer servers, IT equipment, software applications, etc,. The company has an additional outsourcing advantage of the ability to dedicate time to other projects and focus on core business. Running an IT department is a task within itself, both time and money can be saved by outsourcing IT operations.
Other outsourcing benefits
The tax incentives offered to outsourcing corporations is great. If one company has manufacturing operations that are no longer needed, this also saves a country's government on taxes as well. Another outsourcing benefit is the level of quality. Once that work has been outsourced, a new contract agreement can be developed that can require longer working hours or additional terms not set forth in the originating contract. For more information on how to find outsourcing companies available online to assist you in decision making, google "outsourcing companies" or "outsource".
