Question

What are the disadvantages of outsourcing?

Answer 1

Disadvantages of Outsourcing/Limitations of Outsourcing

1. Lack of customer focus- 
   An outsourced vendor may be catering to the needs of multiple organizations at a time. In such a situation, he may lack complete focus on an individual organization.
   As a result, the organization may suffer.
2. A threat to security and confidentiality - 
   The confidential information of the organization may be leaked to the third party, so there are security issues.
3. Dissatisfactory services - 
   Some of the common problem areas with outsourcing include stretched delivery time and substandard quality.
4. Ethical issues - 
   The major ethical issue is taking away employment opportunities from one's own country when the function is outsourced to a company from another country.
5. Other disadvantages -
   i) Misunderstanding of the contracts.
   ii) Lack of communication.
   iii) Poor quality and delayed services.