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Advantages and Disadvantages of Outsourcing

This deals with the advantages and disadvantages of outsourcing, which has become one of the hot issues today from the viewpoint of Quality Assurance. Are we compromising quality at the expense of cost?

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Outsourcing and especially, Software/IT Outsourcing has quite often been the topic of debate. There are many people who view this as a positive development in this age of globalization, while there are segments of people who are quite apprehensive in this context.

There are many advantages as well as disadvantages, speaking from the viewpoint of Quality Assurance. There may be many reasons why a company would go for outsourcing, one of them being, the lack of resources: people, skills, software, hardware or time, to perform the tasks themselves (Philosophe.com, 1999). Apart from that, outsourcing is more than simply cost savings now. "While reducing costs is still the number one reason fueling the outsourcing trend, another key factor is that companies are looking to free up internal resources to focus on more critical initiatives" (Webspacestation.com, 2005).

There are several advantages of outsourcing from the viewpoint of Quality Assurance:

a) The main advantage of outsourcing is cost savings without compromising on the cost. The labor costs in countries such as India are far less as compared to U.S, while the labor quality is more or less the same. Hence outsourcing results in cost ...

Solution Summary

This deals with the advantages and disadvantages of outsourcing, which has become one of the hot issues today from the viewpoint of Quality Assurance. Are we compromising quality at the expense of cost?

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