Outsourcing is the transfer of work (operation) from one company to another. This is usually done to reduce the cost of production or to focus on the main points of the company. The term means the removal of offshoring jobs (operations) from one country to another.
Many companies, such as Dell, received negative publicity because of their decision to transfer power in terms of customer service and technical support.
Many companies, such as Dell, received negative publicity because of their decision to transfer power in terms of customer service and technical support.
Disadvantages Outsourcing for employees
1. The outsourcing system make the employment status of workers is unclear.
2. Outsourcing means there is the increasingly weak position of workers in the company.
3. outsourcing will eliminate the rights and guarantees of the future labor
4. outsourcing practice of dehumanization or denial of one's basic rights of human beings are free and independent.
5. outsourcing will lead to higher unemployment.
6. outsourcing will further minimize the function and role of unions in the company
2. Outsourcing means there is the increasingly weak position of workers in the company.
3. outsourcing will eliminate the rights and guarantees of the future labor
4. outsourcing practice of dehumanization or denial of one's basic rights of human beings are free and independent.
5. outsourcing will lead to higher unemployment.
6. outsourcing will further minimize the function and role of unions in the company
Disadvantages Outsourcing for companies
1. Loss of Managerial Control
Do you have a signed contract to another company carrying out the functions of the entire department or a single task, you rotate the management and control functions to other companies. True, you will have a contract, but managerial control will belong to other companies. outsourcing company you will not be pushed with same standard and the mission that drives your company. They will be encouraged to make a profit from the services they provide to you and other businesses like you.
2. Hidden Costs
You will sign a contract with an outsourcing company that will cover the details of the services they will provide. Every thing that is not covered under the contract will be the basis for you to pay extra fees. Additionally, you will have legal fees to retain an attorney to review the contact to be signed. Remember, this is the business outsourcing company. They have done this before and they are the ones who write the contract. Therefore, you will incur a loss when the negotiations started.
3. Security and Privacy Threats
Life - blood of any business is information that is kept running. If you have a salary, medical records or other confidential information to be sent to the outsourcing company, there is a risk that could affect confidentiality. If the function involves outsourcing company owned by sharing data or knowledge ( eg product images, formulas, etc. ), this must be taken into account. Evaluating outsourcing company carefully to ensure your data is protected and the contract has a penalty clause if the incident occurred.
4. quality problems
Outsourcing companies are motivated by profit. Because the contract will fix the price, the only way for them to increase profits is to lower costs. As long as they meet the requirements of the contract, you will pay. Additionally, you will lose the ability to quickly respond to changing business environment. This contract will be very specific and you will pay extra for changes.
5. Tied to Financial Prosperity Other Companies
Because you 're going to flip a part of your business operations to other companies, you will now be associated with the company 's financial well-being. It would not be the first time that an outsourcing company could go bankrupt and leave you holding the bag.
6. Bad publicity and Ill - Will
The word " outsourcing " reminding different things to different people. If you live in a community that has the outsourcing company and they use friends and neighbors, a good outsourcing. If your friends and neighbors lose their jobs because they were sent across the state, across the country or around the world, outsourcing will bring bad publicity. If you outsource part of your operation, morale may suffer in the remaining workforce.
Do you have a signed contract to another company carrying out the functions of the entire department or a single task, you rotate the management and control functions to other companies. True, you will have a contract, but managerial control will belong to other companies. outsourcing company you will not be pushed with same standard and the mission that drives your company. They will be encouraged to make a profit from the services they provide to you and other businesses like you.
2. Hidden Costs
You will sign a contract with an outsourcing company that will cover the details of the services they will provide. Every thing that is not covered under the contract will be the basis for you to pay extra fees. Additionally, you will have legal fees to retain an attorney to review the contact to be signed. Remember, this is the business outsourcing company. They have done this before and they are the ones who write the contract. Therefore, you will incur a loss when the negotiations started.
3. Security and Privacy Threats
Life - blood of any business is information that is kept running. If you have a salary, medical records or other confidential information to be sent to the outsourcing company, there is a risk that could affect confidentiality. If the function involves outsourcing company owned by sharing data or knowledge ( eg product images, formulas, etc. ), this must be taken into account. Evaluating outsourcing company carefully to ensure your data is protected and the contract has a penalty clause if the incident occurred.
4. quality problems
Outsourcing companies are motivated by profit. Because the contract will fix the price, the only way for them to increase profits is to lower costs. As long as they meet the requirements of the contract, you will pay. Additionally, you will lose the ability to quickly respond to changing business environment. This contract will be very specific and you will pay extra for changes.
5. Tied to Financial Prosperity Other Companies
Because you 're going to flip a part of your business operations to other companies, you will now be associated with the company 's financial well-being. It would not be the first time that an outsourcing company could go bankrupt and leave you holding the bag.
6. Bad publicity and Ill - Will
The word " outsourcing " reminding different things to different people. If you live in a community that has the outsourcing company and they use friends and neighbors, a good outsourcing. If your friends and neighbors lose their jobs because they were sent across the state, across the country or around the world, outsourcing will bring bad publicity. If you outsource part of your operation, morale may suffer in the remaining workforce.
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