Disadvantages of Outsourcing

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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.


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.


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