The Advangtage and Disadvantage of Outsourcing

In: Business and Management

Submitted By gemstone
Words 1001
Pages 5
Outsourcing is an established business tool that uses the best combination of low cost but high quality local and global resources in order to deliver the best service or product to customers. Using outsourcing services of an outsourcing vendor, small and large companies use one outsourcing service, or more than one outsourcing service, to provide a better customer experience.
While outsourcing is an attractive proposition, users of outsourcing services should give careful consideration to thepros and cons of outsourcing while receiving outsourcing services from outsourcing destinations such as India, China, the Philippines, and Brazil, etc.
Sure, outsourcing is a way to save money, but there can also be unexpected costs. The decision to outsource is certainly not one that any business or non-business organization should enter into lightly. To arrive at the right decision, users of outsourcing services should analyze the following advantages and disadvantages of outsourcing, as only they are in the best position to ascertain whether a particular outsourcing service or outsourcing services should be outsourced to an offshore outsourcing vendor.
The most significant advantages of outsourcing are:
Cheaper manpower and outsourcing
Manpower is possibly the most important resource in any company, and is also the constant resource that come at a high cost. For this reason, small and large companies undertake outsourcing services to India of various types. Professionals in outsourcing destinations such as India and the Philippines have a much less cost to the company, both fixed and variable, as compared to the same professionals in the West. Often, these workers are not unionized as well, which further lowers manpower costs.
A major advantage of outsourcing services to India is that India has wide spectrum of outsourcing vendors offering every price point to…...

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