Unlike the popular belief that Outsourcing is a recent phenomenon, the reality is that it has been present since long time. To understand the growing debate on outsourcing, it is relevant to understand the pros and cons of outsourcing. Outsourcing refers to the process in which a commercial contract with a third party service provider is made to provide the services that otherwise might be performed by internal employees of the company. In recent times, the outsourcing has been attracting a lot of debates. And the main reason for the current debate is the emergence of service providers from various countries trying to provide services abroad. Many writers such as rusty holzer offer more in-depth analysis. The main advantages for firms to opt for Outsourcing are: 1. cost savings: the costs associated with an employee of the company is always greater than the cost of an external service provider and this is the reason for most companies to opt for outsourcing of non-core functions.
2. Quality services: since the most Outsourcing providers are highlighted on the services provided, companies can benefit by better quality that would give him an employee of the company. In addition, any service provider always will be obliged to give the best services, since his reputation is at stake. 3. Access to specialized skills: any service provider shall be an expert in the service provided.
In fact, to beat the competition, you would continue perfecting the skills of their employees. In addition, the service provider accumulate expertise in the specific area that is in charge. Getting an outsourcing service, your company has access to such expertise, which can be useful in some other field of operation of the company. 4. Contractual obligation: a service provider responsibility is greater than that of an employee of the company. This makes working with them a safer bet for companies. 5. Problems of personnel: Through outsourcing, a company will avoid all the headaches associated with the recruitment and hiring of personnel for a function specifies within the company.