Summary: Pros and cons for IT outsourcing https://www.thebalancesmb…
Summary: Pros and cons for IT outsourcing
Loss of Managerial Control or Increased Efficiency
outsource entire dept or just a single task
Managerial control will nonetheless belong to another individual or business entity
Will the outsourced company run the business with the same standards and mission that drive your company? and with the same passion?
Outsource company primarily driven to make a profit
profit is a great motivator
outsourcing company has:
wants to do the job well because it wants to stay in business
job might be performed to higher standards
easier to outsource than train own team
if you outsource mundane tasks, you can use your employees more effectively
Hidden Costs or
Be aware of all the costs involved.
Specify in detail in contract
every cost-incurring eventuality must be in the contract
understand the contracts terms
beware if outsource company creates the contract that you understand it
Can cost less
people are expensive
equipment as well
Threats to Security
proprietary information that keeps your business running is its lifeblood
specify in contract about sharing of product drawings or formulas, etc.
include penalty clause if data is shared
in-house jobs does not prevent leaking of info
employees must sign nondisclosure or confidentiality agreement
You're Partners ... Sort Of
tied to the financial well-being of that company just as you would be with any partner
outsourcing company might also partner with others - your company not first priority.
Keep in mind:
particularly one in another country,
your business could effectively operate 24/7
Business is taken care of while you sleep ...
Efficiency is the name of the game with any business