Maharashtra State BoardHSC Commerce 12th Board Exam
Advertisement Remove all ads

Attempt the following. What are the disadvantages of outsorcing? - Organisation of Commerce and Management

Answer in Brief

Attempt the following.

What are the disadvantages of outsourcing?

Advertisement Remove all ads

Solution

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.
Concept: Outsourcing
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

Balbharati Organisation of Commerce and Management (OCM) 12th Standard HSC Maharashtra State Board
Chapter 5 Emerging Modes of Business
Exercise Q.8 | Q 2.3 | Page 111
Balbharati Organisation of Commerce and Management (OCM) 12th Standard HSC Maharashtra State Board
Chapter 5 Emerging Modes of Business
Exercise Q.7 | Q 4 | Page 111
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×