Problems associated with outsourcing in workplace

Augusta

VIP Contributor
Outsourcing in the workplace comes with it's huge benefits but can be detrimental to the company as well. so what are the disadvantages that the company can faced with outsourcing

There's lack of Insufficient vendor evaluation as you might just hire at a beat.

Hiring any body while outsourcing might make one hire one that is not fit with the company's culture.

Another disadvantage is that you might find it difficult to hire people who care about the company

With outsourcing there's always loss of control over processes and outcomes of the job as the person is no staff of the company

You might just be confronted with hidden or unexpected costs
 

Phantasm

Banned
Problems related to outsourcing include communication hurdles, standards control issues, the threat to company data and information, reliance on service providers, loss of power over decision-making processes, hidden expenses, political and legislative risks, opposition by personnel to such kind of decisions in the organization leading to a decrease in morale; loss of intellectual capital; external surprises; relational stability for sustainability purposes in the long run; and ethical implications. This may result into misunderstandings among the parties involved or inconsistency in work levels. Also these can lead to data security concerns as well as dependence on service providers and loss of control over operations. There could be also operational impacts resulting from political change or regulatory changes in a country followed by employee resistance due to job-loss fear or job insecurity.
 

Augusta

VIP Contributor
Yea you are on point. Outsourcing though it can be helpful to a large extent comes with it's issues. Outsourcing can bring about data security concerns, since the user can tamper with the office data as they have access to them.

They might be dependence on external service providers. So the staff within or internal staff have no knowledge on how to execute this.

There's also the loss of control over operations. This could be due to operational demands that is handled by the external worker.
 
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