Essay On Advantages And Disadvantages Of Outsourcing

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Offshore-outsourcing is the practice of hiring an external organization to perform some business in another country from that in which products and services were developed and produced. Offshore-outsourcing is given to organizations an access to highly qualified people and services at a lower operating price that it used to be. There are three main categories in offshore-outsourcing, such as: business process outsoursing(BPO), infrastructure and technology outsourcing and the last one is software outsourcing. In addition, there are such countries which are the biggest offshoring providers, one of the is India, another i will discuss further. It's worth discussing several sings as: advantages and disadvantages of offshore-outsourcing, costs …show more content…

Furthermore, you do not need any more to invest money for recruitment and for the different trainings for your staff in order to be skilled and up to date. People who are hired by those offshore-outsourcing partners are well educated, intelligent people who are masters of their craft. In addition, there is one more very significant advantage is that you can run your business twenty four hours seven days per week. As an example, if offshore-outsourcing to a country like India, which is in another time zone it gives us an opportunity to of making full twenty four hour day. So the main benefit of outsourcing here is that you can produce more goods or services in a day. Offshore-outsourcing shows us an increase in productivity, customer loyalty, also quality of certain goods and services are becoming better that it used to be.

On the contrary, there are several disadvantages in outsourcing-offshore system, one of them is a cultural risk, sometimes not understanding the culture of the offshore-outsourcing provider may lead to poor and inappropriate communication and lower productivity In addition to this, when company start to offshore it is dependent from the partner outsourcing company and we know that nobody is immune from the risk of bankrupcy or financial

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