27995927-Outsourcing - Outsourcing Benefits 1 Reduction of...

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Outsourcing Benefits 1) Reduction of in house staffing requirements 2) Smaller investment in capital equipment 3) More flexibility in meeting changing requirements and adopting new technology 4) More predictable cost structure Risks 1) Too much dependence on vendors 2) High costs associated with vendor fees and profit structure 3) Employment of contractors who don’t understand the operation and culture of healthcare organization Businesses nowadays often choose to hire or outsource employees from outside offshoring companies. The term outsourcing refers to the process of renting employees from other companies. The workers can be hired temporarily, or they can be outsourced on a regular basis depending on the project. During the last ten years, it has become even more common to hire whole firms or the so-called dedicated teams for receiving the services of offshore workers. This business practice can be advantageous to the firm; nevertheless it can be a great disadvantage to others. Employees outsourcing potentially hides many profits which can be gained by means of hiring professional workers. The business usually hires highly qualified and professional employees when needed and who stop working for the outsourcer at the end of the project. In this case the business does not have to spend any extra time and money on upgrading the technology and training of the current staff. At the same time the present staff are gradually kept on the sidelines, and may be disposed of in the long run. Often, the present employees become less competitive in comparison with the workers offshore and even lose their jobs. The experts are particularly concerned with the problem and predict that many American gifted young men and women will simply become unemployed because of the extreme popularity of their offshore competitors. One more issue, dealing with
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This note was uploaded on 04/26/2010 for the course IT IT554 taught by Professor Dr.singh during the Spring '10 term at Punjab Engineering College.

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27995927-Outsourcing - Outsourcing Benefits 1 Reduction of...

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