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Outsourcing

In: Business and Management

Submitted By andie817
Words 635
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Introduction
Before any company starts outsourcing any part of a company it should be investigated and analyzed thoroughly in order to achieve maximum success. The decision to outsource a part of a company should not be taken lightly but rather seriously. There are many advantages to outsourcing, however, with that some disadvantages come in as well. The following information in regards to advantages and disadvantages was taken out of articles about IT offshore outsourcing.
Advantages
There are many good reasons to consider outsourcing. Some are listed below.
Cheaper Labor – workers in developing countries are paid less
Cut Operating Costs – the outsourced work has to be paid for, but this payment is also cheaper than having your company performed the operation itself.
Lower Labor Training Costs – training new employees is expensive. Each employee might need one to three weeks of training and that is expensive. When the customer service or IT department is outsourced the training is cheaper.
Increase Productivity – Your Company can have employees working on site 24 hours a day. It becomes harder to attract talented employees to work less desirable shifts, however with outsourcing your company can provide service 24 hours a day, with workers around the globe operating in the best shifts available.
Focus on Core Business – the outsourcing of the IT department can leave some space for other important departments within the organization.
Disadvantages
As discussed above there are quite a few advantages for IT outsourcing even though there are many reasons to outsource there are also disadvantages your company should analyze
Employees feel threatened – if your current employees see that your company is outsourcing they might start to think they are next and leave your company or it can lead to less productivity and can cause uneasiness.
Lose Customers – your...

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