Question

Define outsourcing and discuss at least two advantages and two disadvantages of this organizational option.

Answer 1

Outsourcing is defined as a business strategy or process that is used to obtain services like physician, nursing, technician, etc. In a managed way.

Advantages of Outsourcing

Simplification of project management - working with a wide range of freelancers provides a dynamic platform to effectively manage the important work.

Reduction in cost - it is always cheaper than paying full time employees. Profit is extended to shorter overheads and time and cost on hiring people will be saved.

Greater access to specialist buildingand relationships are also the advantages of Outsourcing.

Disadvantages of Outsourcing

Hidden costs - sometimes the big organizations asks for signing the lengthy contractual agreements. If you would skip any point then it may lead to unexpected costs and fine.

Security risks - outsourcing sometimes requires personal data then it would be risky to pass data or other's privacy.

Shifting of time frames - it becomes very difficult to synchronise schedule with the partner agency and is the major disadvantage of Outsourcing.