Advantages and Disadvantage of

Outsourcing

Instructor:
Joshue B. Manaloto
Advantages of Outsourcing – Employer Perspective
 Service Provider may have more expertise/capability than
the buyer
• Technical Support
• Accounting
• Animation
 Buyer can leverage economies of scale of the Service
Provider
• Technical Infrastructure
• Human Resources
• Technical Expertise
Disadvantages of Outsourcing – Employer Perspective
 Cost can be higher
 Buyer does not have full control of resources doing work
 Advantages of Outsourcing - Employee Perspective
 “Work Abroad, Live here”
 Professional Growth
 Financial Independence
 Employee Assistance
 Enjoy your favorite food
Disadvantages of Outsourcing - Employee Perspective

 Shifting schedule (possibility to work at night)

 Dealing with irate customer
Benefits of Outsourcing
 Cost savings
 Knowledge
 Improve quality
 Contract
 Operational expertise
 Staffing issues
 Time zone
 Increase in business
 Concentrate more on your core business
 Make faster deliveries to customers
 Improved customer satisfaction
 Disadvantages of Outsourcing

 Loss of control
 Quality problems
 Slow response time
 Can’t understand foreign accents
 Slow resolution times
 Can’t produce desired results
 Reduced sales
 Irritated customers
 Irritated employees, unions, people within community