The Outsourcing to india report of 2012 speaks about the advantages and the disadvantages of outsourcing. It is true that outsourcing has many advantages, but there are quite a few disadvantages as well.
Outsourcing allows companies to reduce the cost of operating their business. It enables them to target a larger customer base. Outsourcing allows companies to function in a more efficient manner. The article also mentions that outsourcing has enabled companies to stay competitive. It has also helped them to serve and interact with their customers in a more efficient manner. All these factors serve to be the advantages of outsourcing and provide a tremendous boost to the performance of the companies who outsource.
However, when a certain company outsources a certain activity, its management loses control over that activity. If the outsourced activity is not performed in a qualitative manner, then the company loses its reputation in the market and this inevitably leads to failure of that business. This is one of the biggest disadvantages of outsourcing – if the outsourced activity is not conducted efficiently, then this jeopardises the entire business.
The researcher draws the flowing conclusion – even though outsourcing has many advantages; still it can backfire if the outsourced activity is not performed as per international standards.
Future work is required to this article in order to explain more advantages and disadvantages of global outsourcing process.