What are the pros and cons of outsourcing?
It’s such a taboo subject and gets such a bad rap that it’s almost not even worth defending. You might be better off defending socialism at a “Tea Party” rally. Okay perhaps that’s overdoing it. It’s not that bad.
However, one mention of the word outsourcing and you get a lot of people up in arms. It’s one of those words that has just accumulated a terrible reputation over the years, whether it’s fair or unfair. When major politicians (Hello Mr. President) and influential business leaders such as Bill Gates speak out against outsourcing, you know it’s destined to become a poisonous term.
But is it fair? It seems like there are plenty of misconceptions on the subject out there. For one, outsourcing is a bit different than offshoring. Outsourcing is putting the work in a hands of a third party vendor, it could be abroad or at home. Offshoring is sending the work overseas, it may stay in the same company or not.
One thing seems certain, there have to be reasons as to why some of the biggest companies such as IBM and American Express outsource constantly. What are the pros of the outsourcing? What are the cons? These are the questions we at Business Review USA try to answer with a good ol’ fashioned list of pros and cons.
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Add comment April 13th, 2010
Outsourcing suppliers will be among the first to benefit from an upswing in the economy, says market analyst Gartner.
When an outsourcing deal collapses the fallout on both sides can be very painful – and if it ends up going to court it could potentially take years to resolve and cost millions. So getting a strong foundation to any project is vital.
High language and IT skills, coupled with low costs, makes Romania a new haven for outsourcing, such as call centres, help desks, IT and payroll, says The Diplomat.