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The advantages and disadvantages of outsourcing

Outsourcing is just a way of contracting a particular service to third party. Shared Services is a tried, tested and proven way to achieve the triple benefit of lower costs, improved control and better services (Wikipedia, 2009).

In the year 2005, a survey was carried out on which area of finance & accounting (F&A) is mostly outsourced; it was found out Payroll and billing is 63%, IT or system support is 56%, Tax services is 56% and so on. We have seen from the trend, payroll is the most outsourced business processes (Segantini, 2005).

Advantages of Outsourcing (Outsource2india, 2009)

Disadvantages of Outsourcing (Outsource2india, 2009)

In conclusion, we have been able to see the advantages and disadvantages of outsourcing, if you feel that the disadvantages will outweigh the advantages on the business process you want to outsource, it is advisable not outsource that business process. In the case of my organization we do not outsource any of our business processes due the fact that we are small company we both weigh the advantages and disadvantage of outsourcing.

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