Drawbacks of Outsourcing Services There are of course drawbacks, as with most business scenarios, when it comes to outsourcing. The risk of exposing confidential date, synchronizing of deliverables, hidden costs, and lack of customer focus are all risks that the organization takes on when it decides to outsource ("Flatworld Solutions", 2016). For example, in Atwood Laboratories situation, using a second party vendor can expose private patient and client information. If not enough research is done on the outsourced companies performance, Atwood Laboratories may lose money and run into more problems down the road. They may be completing the labs for their clients and patients but those clients and patients may not be billed properly causing them to lose money not only with the clients and patients but in the payments made to the outsourced company as well. Aligning Organizational Culture In order to ensure that organizations benefit from outsourcing, it is important for them to do proper research on the company they wish to partner with. There are things that an organization, such as Atwood, can do to ensure that they are choosing the right company. The first thing to look for when choosing an outsource company is to make sure that both organizations have similar mission, values, and vision. One thing to look at when choosing an outsourcing company is to take a look at their customer feedback. Atwood Laboratories should align their organizational structure and culture with that of the of
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- Spring '16
- Outsourcing Services, Atwood Laboratories