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Describe the drawback of outsourcing?

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Describe the drawback of outsourcing?

    • Posted by Prince Chaurasiya 5 years ago

    CBSE > Class 11 > Business Studies
    • 1 answers

    Yogita Ingle 5 years ago

    1. Less secrecy : When an organisation outsources human resources, payout and recruitment services, it involves a risk of exposing confidential company information to a third party.
    2. Quality service : Unless a contract specifically identifies the measurable process of quality service reporting, there could be a poor service quality experience. Some contracts are written intentionally to leave service levels out to save on costs.
    3. Lack of customer focus : An outsourced vendor may be catering to the expertise needs of multiple organisations at a time. In such situations, vendors may lack complete focus on your organisation’s tasks.
    4. Hidden cost : Although outsourcing most of the times is economical in nature, at times hidden costs are involved in signing a contract. Signing a contract across international boundaries may pose a serious threat.
    5. Public opinion: There can be negative perceptions regarding outsourcing and sympathy for lost jobs. This needs to be managed with sensitivity and grace.

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