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Free «Benefits and Risks of Outsourcing» Essay Sample

On the one hand, outsourcing will allow the human resource access services that would be too expensive to maintain in an organization. It also allows an organization to save money on expensive projects. It is one of the ways of accessing highly skilled expertise especially since no extra training is required. Outsourcing also allows companies to concentrate on more important issues as the minor jobs are outsourced.

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On the other hand, outsourcing creates security problems especially when it comes to data issues. The fact that other people are taking care of business reduces the general level of knowledge and skills in the business. The pertinent question on outsourcing is whether the delivery is made on time or not. Time is an important factor in the project and this is one of the biggest risks when outsourcing. Security and loss of business knowledge are the next risks that would affect the business respectively.

  1. How much time should the project take?
  1. What is the budget, how much money is available?
  2. What expertise can the current employees provide?
  3. Can we afford the price for outsourcing?
  4. Is the business data secured?

In order to cater for the risk of time, I would first assess how much time would it take to finish the project. This would allow me to calculate the time required for each input, and whether the outsourcing would perform their part during the time limit. I would also increase the security of the business’ data by involving the information technology department. As a way of maintaining business knowledge, I would ask some of the employees to work together with the temporary employees. This will increase their knowledge and they might also take this as a form of training. Furthermore, service training will aid in maintaining business knowledge and avoid outsourcing. 

   

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