Pros and Cons of Outsourcing

With the growing global economy crises, when it comes to cost cutting, every business looks out for outsourcing, especially to foreign lands. Outsourcing has lately been in trend and various companies are outsourcing some of their major tasks to BPO companies, especially in countries in Asia such as India, Pakistan and Philippines. When you talk of outsourcing, the major benefit of cost cutting cannot be ignored, although various analysts insist that it doesn’t provide that big a benefit to the overall profit of a company. However, many of the analysts also differ from this point of view.

While cost cutting is a major reason why companies seek outsourcing, it isn’t the only one.  There are a number of other advantages. Needless to say, where there are advantages to a thing, it has disadvantages too; these two factors go hand in hand. Because of a large competition in the market out there, the outsourcing companies are always hiring the expert staff; hence offshoring your business might even turn out to be a big advantage, providing the work is of quality. Another huge advantage is that the company gets rid of all sorts of staff issues and the contractual obligations land all the responsibility on the BPO services.

Talking of all these advantages, one major disadvantage of offshoring is the loss of jobs within the country. It is said that if the companies keep on outsourcing the tasks like they are, unemployment within the country will increase on a large scale. However, many analysts are of the view that majority of the companies that plan on offshoring do it to promote and advance their business and to gain access to faster product delivery service rather than load shedding and firing their current staff. While countries might fear unemployment and economy crises, it must be kept in mind that it is more of a global problem, and can only be solved through global unity.