What I learned

I have learned different things. I learned what is outsourcing and what are the advantages and disadvantages of Outsourcing. Outsourcing involves the contracting out of a business process to another party or organization. Making the right decision is one key to achieve success. I also learned that services are one of the common processes that are outsourced. I may not have noticed that sales/marketing is actually one of the outsourced processes. Connecting one organization from another to reduce cost and maximizing human resources by letting the other firm do the work for you according to their specialization. But outsourcing also has its risks. Like having inexperienced managers, and unmotivated labor can create problems.Not clearly defining goals and objectives before starting the outsourcing process. Here are some advantages and disadvantages of outsourcing:

Advantages

- Swiftness and Expertise. Most of the times tasks are outsourced to vendors who specialize in their field. The outsourced vendors also have specific equipment and technical expertise, most of the times better than the ones at the outsourcing organization. Effectively the tasks can be completed faster and with better quality output

- Reduced Operational and Recruitment costs: Outsourcing eludes the need to hire individuals in-house; hence recruitment and operational costs can be minimized to a great extent. This is one of the prime advantages of offshore outsourcing

Disadvantages

- Hidden costs: Although outsourcing most of the times is cost-effective at times the hidden costs involved in signing a contract while signing a contract across international boundaries may pose a serious threat.

- Lack of customer focus: An outsourced vendor may be catering to the expertise-needs of multiple organizations at a time. In such situations vendors may lack complete focus on your organization’s tasks.

And lastly, I also learned that there are ethical issues in outsourcing. Here are some examples:

- Do no harm to indigenous cultures

- Do no harm to the ecological systems

- Uphold universal labor standards

- Uphold basic human rights

- Pursue long-term involvement

- Share knowledge and technology