Outsourcing

• Outsourcing

  Is when an organisation contracts another to do work for them.

  Advantages:

  • Reduces costs of employing staff for non-core activities
  • Saves cost of specialist equipment
  • Allows firms to concentrate on their core activity
  • Specialist firm may produce goods at a lower cost
  • Specialist firm may have knowledge and skills to complete the job to a higher quality.
• Outsourcing is when an organisation contracts another to do work for them.

  Disadvantages:

  • Confidentiality Issues
  • May be very expensive
  • The organisation will have reduced control
  • Firm may take a long time to complete
  • May involve redundancies
  • Communication problems may mean the job is not of a suitable standard.