What is Outsourcing?
What is outsourcing? Many people still have no idea about outsourcing. What is outsourcing is the act of a company that contracts with another company to provide services that otherwise could be done by in-house employees. The tasks that are often outsourced could be done by the company itself, but mostly there are financial benefits of outsourcing. Most large corporations now outsource jobs like e-mail services, call center services and payroll.
There are several reasons why companies outsource different jobs. The most prominent advantage to the company seems to be the fact that it usually saves them money. A lot of the companies that provide outsourcing services could do the work for less money since they do not give benefits to their workers and have lesser overhead expenses.
Nevertheless, there are some disadvantages to outsourcing. One of the disadvantages is that it eliminates direct communication between clients and the company. This could hinder a company form building a solid relationship with customers and could often lead to dissatisfaction on both sides. There is also the risk of not being able to control a few company aspects since outsourcing could lead to delayed project and communications. Sensitive information is vulnerable and a corporation could be very dependent on its outsource providers which may lead to problems if the provider backs out of the contract suddenly.