Cost Savings<\/strong><\/p>\n There can be significant cost savings when a business function is outsourced.\u00a0Employee compensation\u00a0costs, office space expenses and other costs associated with providing a work space or manufacturing setup are eliminated and free up resources for other purposes.<\/p>\n Focus on Core Business<\/strong><\/p>\n Outsourcing allows organization to focus on their expertise and core business.\u00a0 When organizations go outside their expertise, they get into business functions and processes that they may not be as knowledgeable about and could potentially take away from their main focus.<\/p>\n An example of this is when a grocery store decides to add a florist\u00a0to their operation.\u00a0 If too much focus is put on that part of the business they lose focus of the core business which is grocery.<\/p>\n Improved Quality<\/strong><\/p>\n Improved quality can be achieved by using vendors with more expertise and more specialized processes.<\/p>\n An example of this would be contracting out a cleaning service. An outside service would have the resources for hiring, proper training and facility inspections that may not be available if the function were kept in-house.<\/p>\n Customer Satisfaction<\/strong><\/p>\n The advantage of having a vendor contract is they are bound to certain\u00a0levels of service and quality.<\/p>\n An example of this is if your IT function is outsourced and the technician calls in sick, it is the vendor\u2019s responsibility to find someone to replace them and meet your support needs.<\/p>\n Operational Efficiency<\/strong><\/p>\n Outsourcing gives an organization exposure to vendor specialized systems.\u00a0 Specialization provides more efficiency that allows for a quicker turnaround time and higher levels of quality.<\/p>\n Quality Risk<\/strong><\/p>\n Outsourcing can expose an organization to potential risks and legal exposure.<\/p>\n As an example, if a car is recalled for faulty parts and that part was outsourced, the car manufacturer carries the burden of correcting the potentially damaged reputation of the car maker.<\/p>\n While the vendor would need to make good on the faulty product by contract, the manufacturer still has the\u00a0black eye<\/strong>\u00a0from the incident and carries the burden of correcting the negative public perception.<\/p>\n Quality Service<\/strong><\/p>\n Unless a contract specifically identifies a measurable process for quality service reporting, there could be a poor service quality experience.\u00a0 Some contracts are written to intentionally leave service levels out to save on costs.<\/p>\n Language Barriers<\/strong><\/p>\n If a customer call center is outsourced to a country that speaks a different language, there may be levels of dissatisfaction for customers dealing with the language barriers of someone with a strong accent.<\/p>\n Employee\/Public Opinion<\/strong><\/p>\n There can be negative perceptions with outsourcing and the sympathy of lost jobs.\u00a0 This needs to be managed with sensitivity and grace.<\/p>\n Organizational Knowledge<\/strong><\/p>\n An outsourced employee may not have the same understanding and passion for an organization as a regular employee.\u00a0 There is the potential that an outsourced employee will come in contact with customers and not be as knowledgeable of the organization, resulting in a negative customer experience.<\/p>\n Labor Issues<\/strong><\/p>\n Organized labor in the United States has very strong feelings about outsourcing to other countries that have a less standard of living and worse working conditions.\u00a0 This viewpoint can affect how the workforce responds to outsourcing and can affect their daily productivity.<\/p>\n Legal Compliance and Security<\/strong><\/p>\n It is important that issues regarding legal compliance and security be addressed in formal documentation.\u00a0 Processes that are outsourced need to be managed to ensure there is diligence with legal compliance and system security.<\/p>\n An example of this is outsourcing the IT function and having an outsourced employees use their access to confidential customer data for their own gain.<\/p>\n Employee Layoffs<\/strong><\/p>\n Outsourcing commonly results in the need to\u00a0reduce staffing levels.\u00a0 Unless it can be planned through attrition, layoffs are inevitable.\u00a0 This is difficult at best and if not managed appropriately, can have a negative impact on remaining employees.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Advantages of Outsourcing Cost Savings There can be significant cost savings when a business function is outsourced.\u00a0Employee compensation\u00a0costs, office space expenses and other costs associated with providing a work space or manufacturing setup are eliminated and free up resources for other purposes. Focus on Core Business Outsourcing allows organization to focus on their expertise and […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[30,21,28,27,20],"class_list":["post-577","post","type-post","status-publish","format-standard","hentry","category-internet-marketing-internet-marketing","tag-best-online-marketing-company-new-delhi","tag-online-marketing-companies","tag-online-marketing-companies-india","tag-search-engine-marketing-india","tag-social-media-marketing"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.webigg.com\/blog\/wp-json\/wp\/v2\/posts\/577","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.webigg.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.webigg.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.webigg.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.webigg.com\/blog\/wp-json\/wp\/v2\/comments?post=577"}],"version-history":[{"count":2,"href":"https:\/\/www.webigg.com\/blog\/wp-json\/wp\/v2\/posts\/577\/revisions"}],"predecessor-version":[{"id":579,"href":"https:\/\/www.webigg.com\/blog\/wp-json\/wp\/v2\/posts\/577\/revisions\/579"}],"wp:attachment":[{"href":"https:\/\/www.webigg.com\/blog\/wp-json\/wp\/v2\/media?parent=577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.webigg.com\/blog\/wp-json\/wp\/v2\/categories?post=577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.webigg.com\/blog\/wp-json\/wp\/v2\/tags?post=577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Disadvantages of Outsourcing<\/strong><\/h3>\n