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The various disadvantages of OutsourcingBY: Deena David | Category: Business and Finance | Post Date: 2009-12-02
Outsourcing is a method of having the job of one company to be done by another individual or company that is paid on the basis of money for work and is not on a regular pay. The company also has the right to terminate the company or individual doing the work that has been outsourced. This has various advantages and this is the reason for many companies starting to outsource the work done by them. There are also a lot of disadvantages that are associated with outsourcing work. This article lists the various disadvantages of outsourcing the work done by a company. 1. Loss of jobs / employment: The company that has outsourced work will reduce the number of staff on it rolls or at least it will not take in new recruits. This will lead to loss of employment and also potential employment to many people. This is especially true if the work has been outsourced to a company that is off shore. If the company has outsourced the work to another company within the county, then the job loss may not be present, but there will be a decrease in the earning potential of people. 2. Quality of products: When the company outsources production of a certain equipment or part of a machine, then the quality is not assured. The outsourced work is usually done by a reputed company, but the quality assurance many not be there and if things go wrong, then the company that outsourced the work will have a tough job on its hands to satisfy the customers due to the substandard quality of products. 3. Economic growth may be decreased: The growth of the economy in a country may decrease because of the decrease in the number of employment opportunities and also in the income earned by the company. All these may adversely affect the economy, especially if the country has many companies that outsource the work. This can be a disadvantage in the country that has outsourced the work, but the economy and the income of the company that has got the order for the outsourced work will benefit because of the outsourcing. 4. Quality of Support: The support that is needed for the launch of any product and the correction of defects is very difficult in a product that has been produced by outsourcing. At the same time, if the product was not outsourced to be produced, it would be very easy to rectify and major flaws in the product. This can be prevented by creating a separate wing in the outsourced country to give support for the product produced. This will again cost money for the company and so many companies do not do this to save money. These are some of the disadvantages of outsourcing the work to another company or region. Though there are some advantages too, usually companies outsource the work to earn more profit at the consequence of the employees working in the company. This is considered to be a major disadvantage. Article Source: http://www.saching.com About Author / Additional Info: I have completed my Masters Degree in Paediatric Nursing. I am a writer with a passion for writing. I have been writing for some blogs and other sites. Comments are welcome at the following e mail address: deenaanddavid@gmail.com Additional Articles: * Surviving a depression is easy if you plan adequately * My academic journey so far ... * Reservation in Indian colleges: Effects of caste based reservation * Teen Pregnancy And How -To Reclaim Your Life * How to have an environment friendly holiday? Does this article violate or infringe on your copyright ? It is a violation of our terms for authors to submit content which they did not write and claim it as their own. If this article infringes on your copyrights, then use our Contact us form with the detailed proof of infringement along with the offending article's title, URL and writer name. If you do not hear back from us then contact us again in another 10 days. Thank you. Comments on this article: (0 comments so far) * Additional comments are now closed for this article *
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