Advantages of outsourcing business operations 4

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ADVANTAGES OF OUTSOURCING BUSINESS OPERATIONS 4 customers thus undermining the competitive advantage of the organization. Additionally, offshoring leads to internal efficiency by reducing the costs such as labor (Lacity, 2011). Radlo (2016) also affirms that outsourcing is that it enables a firm to focus on its core activities. Another significant benefit of outsourcing is that it is a catalyst for change. The outsourcing firm can take advantage of the outsourcing partners to learn how to perform the outsourced services. After learning the best practices in the outsourced service, the organization then passes the knowledge to its employees. With time, the firm can undertake the functions internally. However, even though outsourcing is cost-effective, it sometimes has hidden costs. Also, when an organization outsources function such as recruitment, it risks losing some of its confidential information. Finally, the study anticipates that these findings would be of importance to firms intending to outsource their business processes.s
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ADVANTAGES OF OUTSOURCING BUSINESS OPERATIONS 5 References Lacity, M. C., Solomon, S., Yan, A., & Willcocks, L. P. (2011). Business process outsourcing studies: a critical review and research directions. Journal of information technology , 26 (4), 221-258. Radło, M. J. (2016). Offshoring, Outsourcing and Production Fragmentation: Linking Macroeconomic and Micro-/Business Perspectives . Springer.
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  • Winter '15
  • Business process outsourcing, Outsourcing Business Operations

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