Outsourcing is a contract or arrangement in which one company provides services for another company to be performed by in-house employees that are usually located overseas. This is the trend nowadays and large companies are outsourcing jobs handled by separate third-party companies that specialize in each service. Such services include call center, payroll and accounting, human resources and recruitment among other functions.
There are a lot of reasons why most companies are shifting to the outsourcing trend and these include costs savings, quality improvement and making the most out of the efficient use of technology, labor, capital and resources. If a company has its other services taken care of by another company, it can then focus more on other critical business issues. In addition, outsourcing is a good strategy when it is time for the business to expand. It is also a good way to start building strong relations to other countries.
There also some disadvantages associated with outsourcing. One is that outsourcing prevents a company from building solid relationships with their customers due to lack of direct communication. Another thing is language barrier, which is common to outsourcing call center services. Since most call centers are established outside of the US, many customers find it hard to understand some agents, which may lead to dissatisfaction. Another downside is not being able to control some aspects of the company due to delayed project implementation and communication.
Although outsourcing may prove to be highly beneficial, there are also some unexpected drawbacks. It is very important that companies should think twice and accurately assess if outsourcing is indeed the ultimate solution to the needs of the business.