Discuss various limitations of outsourcing?
CBSE Class 11
CBSE Class 11 Business Studies
2016-08-02 03:00:00 UTC
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.
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.
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.
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.
Public opinion: There can be negative perceptions regarding outsourcing and sympathy for lost jobs. This needs to be managed with sensitivity and grace.