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Surname:
Outsourcing
Professor:
Date:
Outsourcing is the process involving allocation of particular business processes or
operations to a specialist who is an external service provider. In some cases, an organization is
unable to handle all the elements of a business operation internally. Once a task has been
outsourced to a service provider, the service provider takes the responsibility of carrying out the
activities as directed in the contract.
Outsourcing presents various benefits to the organization due to the swiftness and
expertise involved. Tasks are usually outsourced to vendors who have specialized in a particular
field. These outsourced vendors have special equipments as well as technical expertise that are in
most cases effective and better than the ones used by the outsourcing company. Additionally,
outsourcing helps organizations to focus more on its core processes and operations in that it gives
the company more time to strengthen on their main business operations. Outsourcing is also
beneficial as it enables risk-sharing. This is a critical factor as it enables an organization shift
some responsibilities as the outsourced vendor often have a plan on risk-mitigation factors.
However, its essential for a company to evaluate critically before outsourcing any
component of the operations to an outsourcing vendor. This is because outsourcing could pose
difficulties if not well analyzed. The company takes some risks in exposing some of the
confidential information to a third party. This move could potentially harm the company in case
of leak of confidential matters to competitors through the outsourced vendor. Other factors that
may be considered as disadvantages of outsourcing includes: hidden costs especially in events
where international boundaries are involved; lack of customer emphasis and focus in some cases;
and synchronization of deliverables in cases where the right and effective partner was not sorted
out.

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Many organizations are today considering outsourcing some of their operations mostly
because of diversification of doing business as in transverses various countries due to
globalization. Companies engaging in a global platform will find it difficult to purchase all
equipments for its operations in all the countries it engages in and therefore outsourcing becomes
a common factor to consider.