What are the pros & cons of outsourcing to third party vendors?

What are the pros & cons of outsourcing to third party vendors?


  • Focus on core business issues.
  • Benefit from best-of-breed solutions.
  • Better quality at lower costs.
  • Better process maturity, resource flexibility and economies of scale.
  • Flexibility in deploying new technology.
  • Quick wins with outsourcing.

  • Burden of excess capacity or challenge of insufficient capacity is done away with.
  • High unit personnel cost.
  • Tight business margins.
  • Not enough financial muscle to sustain very tight payback periods.

Source: neoIT

Latest Columns

Investment and career opportunities in BPO industry

Outsourcing of business responsibilities to a service provider from an external company has emerged as a global trend. India is a major player in providing back office services to big companies mainly from the USA. The sudden growth of outsourcing operations opened up more than a million direct and indirect job opportunities in BPO industry. […]

Intangible Motivation is Necessary for Job Satisfaction in BPO

The success of an organization can be evaluated from the labor turnover rates. Most of the companies are unaware or not concerned about the benefits that can be obtained from proper reward systems and motivational techniques.  The employees from the BPO sectors are often overburdened with work. Long working hours and night shifts develop mental […]

Speak Your Mind