Everything has its drawback. As we discuss, IS or IT outsourcing have its benefits, but if they were handle unethically, it could turn to a nightmare for any business processing outsourcing or BPO. The threat can be divided into two categories, which is internal and external. External threat usually can be prevented, and does not leave a huge impact on the business. On the other hand, the internal threat could really leave a huge impact in the business.
External threat, usually are more open or public. Preventing this external threat are highly possible. External threat consist of, the loss of control over your management, hidden cost, argument of confidentiality, quality problems, tied to the financial status of another company, images of your company, general security issues in IS, and hackers.
The loss of control over you management, where when you agreed to sign a contract, to outsourced certain part of your department, it’s more likely, you give the control of that department over the outsourced company. The outsourced company was not “under the same roof” as your company missions or visions. They will be more likely, to make profits from the services that they offer.
As we know, hidden cost or charge is common, take note on this. Whatever service we subscribe, there will be hidden charges or cost. Same as outsourced company, where they will handle the paperwork of their services offered to you, in details. Although the paperwork is details, there still services that are not mentioned, but already being agreed by both parties. So the services that are not mention, but need to be conducted in order to meet its goals, will be counted as an extra charge that will need to be paid for.
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..., as they familiar with the company environment. This threat has proven to be the most dangerous, where it is unpredictable.
To be concluded, there are many other threat and risk of outsourcing. After considering the threat, when outsourcing, all aspect should be considered. Externally, even internally can be a major threat that could jeopardize company futures. Before outsourcing, assess all the probability of threat that may occur during the process. Counter or prevention steps should be prepared, in case of emergency.
Works Cited
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... bring the anticipated benefits, and in some instances can be a risky proposition (Chin, 2003). Villcocks and Lacity (1998) stated that among the possible disadvantages are the potential loss of control over critical functions such as timeliness and quality of service, difficulty in monitoring vendor performance, difficulty in explaining the business needs to vendors, the potential for loss of company secrets as well as intellectual property, and the high cost of outsourcing contracts. Schools also risk developing a dependency on outside agencies, lowering employee morale, loss of development skills for employees, and having to face the prospect of managing relationships that go wrong (Kakabadse & Kakabadse, 2000; Hayes, 2001). By outsourcing, not only do schools lose some of the personal touch in servicing their employees but their clients as well (Rombel, 2002).
Among the threats that this company is facing include air pollution, terrorism, Islamic revolution. Increase of oil and furl, reduction of the number of travelers moving from one part of the globe to the other and voices of labor unions who fight for the rights of workers.
Since the concept of outsourcing was introduced it has been a subject of debate between politicians and citizens of the United States. Remarkably, it was the United States who supported outsourcing and now it is the United States that feels its economic progress is being threatened by outsourcing. One may argue that the financial situations that existed two decades earlier are not the same as they are today, thus the change of time, business priorities of economies have also changed.
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Businesses face lots of challenges today during their development and growth, and they should decide how much financial investment are they want to put into the development of certain projects.
Whilst there are clear risks involved with outsourcing, it remains rather simple to see why more and more companies are attracted to this current business model. Cost saving, and lots of it! Comedian Woody Allen once so eloquently said, "Money is better than poverty, if only for financial reasons". It seems that the owners of big businesses today have taken that message to heart. They only care for their business and not their nation or fellow countrymen.
The assignment research objectives were (a) to gain insight into securing strategic partnerships in the information technology (IT) arena; (b) to understand the choices made to reduce information and security risks by exploring the different outsourcing techniques, and; (c) to understand how business process associated with outsourcing will stimulate awareness on how the process is interlinked with human behaviors. The topics covered include an evaluation of the specifications of information security consultants to become strategic partners assisting in the reduction of information or security risks, an examination of four factors that were omitted in the specifications that add value to the selection process, and an explanation of the value of the four factors.
...urcing services, the company operation will be became a mess. This is because one organization can’t run a lot of task or project at one time. Therefore an organization need outsourcing in the way to help their organization run smoothly.
A disciplined approach to management eying leading employees, improving the management team and building the business strategy. Instead of treating each problem as a one off. They design systems and structures that make it easier to handle in the future. (Techrepublic, 2015) 2.2. Risk of exposing confidential data: When an organization outsources HR, Payroll and Recruitment services, it involves a risk if exposing confidential company information to a third-party Synchronizing the deliverables: Some of the common problem areas include stretched delivery time frames, sub-standard quality output and inappropriate categorization of responsibilities. At times it is easier to regulate these factors inside an organization rather than with an outsourced partner Hidden costs: Although outsourcing most of the times is cost-effective at times the hidden costs involved in signing a contract while signing a contract across international boundaries may pose a serious threat Lack of customer focus: An outsourced vendor may be catering to the expertise-needs of multiple company at a time. In such situations vendors may lack complete focus on your organization 's tasks. 2.3. 1.Know the
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