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Advantages And Disadvanatges Of Outsourcing Essay

2611 words - 11 pages


Outsourcing is one of the new ways to expand the business or the skills to achieve success or target higher than usual. Outsourcing can be defined as any kind of task, operation, job or a process that is done by employing employees in an organization, but it is contracted out to a third party for a predetermined period of time. In addition, the functions performed by these third parties can do the work in the area or outside the area. For example, a company requires expertise in a field and a lack of expertise in the country, they can contract a specialist from outside the strict conditions laid down and agreed.
Most times outsourcing are mostly done by large companies where their status is stronger and the economy and their finances well. Small companies often rarely do the outsourcing process as thought it was not very safe and may cost relatively high. Assuming they are too short and they do not quite understand the advantages of outsourcing itself. With this advantage they can develop their skills with the expertise they can only be imposed from the outside with a very reasonable cost compared to those taking experts from abroad to their companies which necessarily increase the cost of their operations.
As performed by the Royal Bank of Scotland which they outsourcing employees for information technology projects and their information systems from abroad among them junior technician who comes from India. But in this case caused some problems in the system that they run that there was some problem in the system data lost due to software updates they freeze. Consequently, millions of transaction have affected by that problem.

1.0 Question 1

Competitive advantage can be defined with multiple meanings of which competition from a firm in which the firm has many advantages over its competitors in terms of management, technology, and services to its customers. Various advantages can be obtained if the competitive advantage of a company controlled by a well. With the availability of outsourcers in information technology and information systems various competitive advantages can be gained by a company of which are: -
1.1 Skilled expertise
Most companies have a variety of problems in finding a source for complete success in the company or in a project. This problem is also accompanied by a variety of other problems of which cost problem for which a need to remove the cost and invest in training their employees to the highest standards as an expert in a particular field and this is a great investment because not only have to invest for the employee but also a the company will have to pay for expert trainers teach these workers with high rates. But if done free of outsourcing companies provide this access and the company can cut costs by outsourcing expertise and the company also get the added benefit of not having the burden of managing them directly. For example, as written by Robert L. Scheier (March 8, 2012) he says that the...

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