Disadvantages of Outsourcing
All the above mentioned benefits made me think: OK, but what are the limitations and disadvantages of outsourcing? I can think of these:
1. Less management control over the outsourced activities
2. Increased overhead costs (for the activities which are not being outsourced).
3. Potential security or confidentiality issues.
4. Complexity, resulting in a slower reaction to changing circumstances.
5. Potential quality issues, resulting in irritated clients, lower sales.
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Bas, Netherlands
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Outsourcing is just a myth...
Disadvantages...?
The efficiency gains which are supposed to be achieved by externalizing activities are mostly unproven, unless maybe in reports with questionable independency. Outsourcing is merely a rationalized myth and many companies experiment with it or do some limited outsourcing because it is a fashionable concept in the boardrooms.
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CROOS, SRI LANKA
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Disadvantages of Outsourcing
Reduced sales, Loss of control, Slow responce time, Quality problems, Can't understand foreign accen... Sign up
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SH Ong, Malaysia
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Outsourcing Disadvantages
Some additional comments from my personal experience after Cliff-USA: 1. Devastated brand name in lo... Sign up
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Vivek Singh, India
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Outsourcing Disadvantage
The disadvantages of o/s are of different nature according to the type and amount of o/s. For exampl... Sign up
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nickdu, China
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Outsourcing's disadvantage
In some developing countries, most 3rd party companies only have the cost advantage, and their staff... Sign up
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Steve Balogun, Nigeria
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Disadvantages of Outsourcing
Agreed that outsourcing has many advantages, but to me, its disavantages seem to over weight the adv... Sign up
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Tim, USA
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Disadvantages?
I will preface this by saying that I work for an IT outsourcer. I speak to many prospects & custome... Sign up
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H. Zoomers, Netherlands
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Still more Disadvantages / Risks of Outsourcing
- Loss of Core Competence (if associated with the outsourced functions)
- Discontinuity of Service ... Sign up
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Maarten de Groot, Netherlands
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Reasons for Backsourcing of Information Systems
Here is my contribution on disadvantages of outsourcing:
Natasha F. Veltri, Carol Saunders, C. Br... Sign up
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