Surname:OutsourcingProfessor:Date:Outsourcing is the process
involving allocation of particular business processes or operations
to a specialist who is an external service provider. In some cases,
an organization is unable to handle all the elements of a business
operation internally. Once a task has been outsourced to a service
provider, the service provider takes the responsibility of carrying
out the activities as directed in the contract. Outsourcing
presents various benefits to the organization due to the swiftness
and expertise involved. Tasks are usually outsourced to vendors who
have specialized in a particular field. These outsourced vendors
have special equipments as well as technical expertise that are in
most cases effective and better than the ones used by the
outsourcing company. Additionally, outsourcing helps organizations
to focus more on its core processes and operations in that it gives
the company more time to strengthen on their main business
operations. Outsourcing is also beneficial as it enables
risk-sharing. This is a critical factor as it enables an
organization shift some responsibilities as the outsourced vendor
often have a plan on risk-mitigation factors. However, its
essential for a company to evaluate critically before outsourcing
any component of the operations to an outsourcing vendor. This is
because outsourcing could pose difficulties if not well analyzed.
The company takes some risks in exposing some of the confidential
information to a third party. This move could potentially harm the
company in case of leak of confidential matters to competitors
through the outsourced vendor. Other factors that may be considered
as disadvantages of outsourcing includes: hidden costs especially
in events where international boundaries are involved; lack of
customer emphasis and focus in some cases; and synchronization of
deliverables in cases where the right and effective partner was not
sorted out.
Many organizations are today considering outsourcing some of
their operations mostly because of diversification of doing
business as in transverses various countries due to globalization.
Companies engaging in a global platform will find it difficult to
purchase all equipments for its operations in all the countries it
engages in and therefore outsourcing becomes a common factor to
consider.
