The Pros And Cons Of Outsourcing: Advantages And Disadvantage

Opting for a suitable external source usually means a decrease of total costs to achieve lower prices to purchase domestic costs generated by doing the activity in the company. Sometimes the cost reduction is quantifiable and obvious, while in others, the verification is more complex because self hides many costs of monitoring and coordination in complicated structures of resources that lead to justify.
Outsourcing transforms many fixed costs into variable. The development of activities in the company generates an amount of fixed costs. Which it is independent of the level or amount of such activity and represents a heavy economic burden in periods of recession. The current trend suggests removing rigidity, trying to convert most of the costs into variable items, to ease the position of the company and make it less vulnerable. Enroll in this area, changes in personal

This improves the position of the company in today 's highly globalized market, turbulent and competitive, in which companies compete in all areas and should bring advantages not only in the specific presentations of the products they sell, but in all areas It should be higher than those of competitors. This aspect is highly related to costs and profitability already mentioned.
Disadvantages
In certain processes outsourcing, it can be observed instability of supply, which is manifested in breach of the terms of production by suppliers, quality deficiencies, price changes by suppliers, which in the short term is difficult switch to another provider.
An opening to third parties can be dangerous. It may be lost confidentiality or simply be suffered a process of external influence that may lead to harmful levels at the operational level. It can generate a loss of identity in communicating organizational interests, shared values and beliefs as diluted; suppliers do not behave as members of