• Service provider files for bankruptcy,
or has a lack of funds, or there is a labor shortage...
• Outsourcing requires the control of the process being
outsourced; thus your company may loose control over its process
• The service provider in India and other countries generally
services many companies.
• The attitude of customers in the USA are trending against
companies that outsource to India (Communication Problems).
Pros
• Companies can save on operational costs.
In fact most companies can cut their operating costs to half by
outsourcing
• Get access to cheaper and more efficient labor
• Save on labor training cost
• Get access to better technologies at a cheaper cost
• Increase productivity
• Concentrate on core competencies
