HR Management
MBAO 6030
Outsourcing Advantages:
Better quality people and knowledge may be applied to
an activity or task by the outsourcing firm.
Reduction in administrative costs may be possible
when certain tasks are outsourced.
Outsourcing certain activities and employees that do
not fit with company culture may be used to preserve a
strong culture or employee morale.
Outsourcing Disadvantages:
Outsourcing may lead to loss of control of
certain activities which may be a problem on
time sensitive projects for example.
Outsourcing an activity may result in loss of the
opportunity to gain knowledge and information
that may have general application to other key
processes and activities.
High
Strategic Importance
??? Insource
Outsource Contingent
employees
Low
Low High
Interdependence