What are the benefits and the problems of outsourcing?

Benefits of outsourcing:

1. Cut the costs of hiring full time employees to do the job

2. Have access to the highest competitive edge in the market among qualified vendors

3. Provide more options to choose from

Problems of outsourcing:

1. Not ensuring the quality of the product / service

2. Take time to compare between the outsourced options

3. Face the risk of not delivering on time

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● Benefits include reduced cost, access to expertise not available within HR, increased flexibility and speed of response, and freeing-up HR to focus on more value-adding activities.

●   Problems include suppliers increasing charges, short-term decisions on what can be outsourced, lower employee morale.

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