Disadvantages of Outsourcing

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Cliff, USA

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.

  Bas, Netherlands

Outsourcing is just a myth...

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.


Disadvantages of Outsourcing

Reduced sales, Loss of control, Slow responce time, Quality problems, Can't understand foreign accents, Slow resolution ...

  SH Ong, Malaysia

Outsourcing Disadvantages

Some additional comments from my personal experience after Cliff-USA: 1. Devastated brand name in long term if limited c...

  Vivek Singh, India

Outsourcing Disadvantage

The disadvantages of o/s are of different nature according to the type and amount of o/s. For example in a construction ...

  nickdu, China

Outsourcing's disadvantage

In some developing countries, most 3rd party companies only have the cost advantage, and their staff"s quality is not hi...

  Steve Balogun, Nigeria

Disadvantages of Outsourcing

Agreed that outsourcing has many advantages, but to me, its disavantages seem to over weight the advantages:1.The activi...

  Tim, USA


I will preface this by saying that I work for an IT outsourcer. I speak to many prospects & customers regarding these i...

  H. Zoomers, Netherlands

Still more Disadvantages / Risks of Outsourcing

- Loss of Core Competence (if associated with the outsourced functions) - Discontinuity of Service (in case the outsouc...

  Maarten de Groot, Netherlands

Reasons for Backsourcing of Information Systems

Here is my contribution on disadvantages of outsourcing: Natasha F. Veltri, Carol Saunders, C. Bruce Kavan write in C...

  Ad Mertens
General Manager, Netherlands

Outsourcing Disadvantage

A disadvantage of outsourcing is in the issues that cannot be managed, or only at costs higher than the value of the ad...

  Siphelo Colbert Nqeketho
Strategy Consultant, South Africa

Outsourcing: Disadvantage ....?

Main disadvantages: competitor threat and loss of touch with your market. I agree with Tim; most disadvantages mentione...


Disadvantages of Outsourcing

It's good to give all the lectures and theories about outsourcing, but does outsourcing really bring the needed strategi...

  de Ruiter
Project Manager, Netherlands

Disadvantages or Risks

In line with Tim, several of the disadvantages mentioned are not disadvantages but risks which need to be managed. Some...

  Oskar Jellbo
Teacher, Sweden

CONs of Outsourcing

Loss of Buyer's Competence due to Outsourcing: If you outsource something that you make today, you are probably a very c...


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