Outsourcing: Advantages and Disadvantages Essay

Submitted By gill_ip
Words: 376
Pages: 2

Q- A Discuss what you consider to be the major benefits and difficulties with outsourcing?
Ans -A Outsourcing
A practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally. Outsourcing includes both foreign and domestic contracting, and sometimes includes relocating a business function to another country. Financial savings from lower international labor rates is a big motivation for outsourcing/offshoring. Some Companies, which are using outsourcing, are – Telstra, Optus, Qantas and many more. Benefits
1) Guaranteed Cost Savings
Organizations with in-house sourcing will struggle to achieve the level of savings as compared to if it’s outsourced because cost of labor is lower in overseas. When we outsource services like medical billing, call center etc. to a low-cost country like India or Philippines, you are getting access to quality services that are offered at a much lower cost. Maintaining an infrastructure can be an extra burden for some businesses, which outsourcing can remove.
2) Get access to skilled expertise
One of the primary reasons why a business may want to outsource a task is when it requires skilled expertise. Outsource can helps to achieve high level of specific IT skills because company can get access to vast group of new experts with high skills.
3) Increasing in-house efficiency

After you allocate tasks to your outsourcing partner, they share the workload of your employees. This allows you to develop your internal task force and use…