Disadvantages of Outsourcing

Outsourcing can be defined as providing services to some other company. You must have heard about business process outsourcing (BPO). This comprises of sifting of entire business to some other location which will be governed by third party. Yes there are advantages of BPO but you cannot say that there are not any disadvantages. Yes there are many disadvantages related to all type of outsourcing. I will tell you about some of them.

1.Dependability on the source provider.

2.Losing control over the service being outsourced.

3.The employees who are outsourced are not as loyal towards the company as the original employees are.

4.Some times some people feel that it's not smart to hire foreign peoples and sell locally.

5.It's always disadvantageous to outsource the customer service department to some other companies. You will really feel that this can be disastrous because you can not outsource you customer service to a German company where majority of the people don't know about English. Even more serious is note that they cannot understand properly what the US people might want to listen.

6.Another disadvantage is a threat to the security and confidentiality which are surely in danger since the outsource employees will not be as loyal as the original employees.

7.The company that outsources can get into serious trouble if the service provider refuses to provide business due to bankruptcy, labor or lack of funds.

8.The company may loose control over the process.

9.The current employee of the company may feel unsafe due to outsourcing. They might think that they can also be outsourced. They will feel unsafe and hence will not work properly.

10.The employees who are outsourced are always in dilemma related to their job position.

I have given you ten disadvantages related to outsourcing process. However I must also tell you that outsourcing is very common and no one can neglect it. There are so many companies who provide outsourcing services and they cannot be discriminated just because of some disadvantages. No company can work without outsourcing. Outsourcing is the need of the hour and you will have to realize that it is a must.Can you really think of situation without BPO? BPO is one of the most important parts of any companies.

I must address that companies like Accenture, Microsoft, Google, PeopleSoft all are involved in outsourcing. Now if so many big companies are involved then should some one have problem. It's really wastage of energy. I can count hundreds of profits related to outsourcing. And I must tell you that there are so many advantages that you can easily neglect some disadvantages. It's really useless to talk about them.