Answer to Question #222991 in Management for Feruza

Question

Discuss the reasons why managers may choose to outsource and also identify the disadvantages of outsourcing for an organization.

Answer 1

There are several reasons why managers may decide to outsource. For example, they outsource to minimize operation costs. In this case, the managers outsource to save money. Also, they outsource to save training costs on particular jobs or new employees. They also outsource to upsurge efficiency for some time-consuming operations that organizations may lack resources for. Lastly, they outsource to advance the organization's focus. Nevertheless, there are disadvantages to outsourcing. for instance, there can be a lack of control since managers give up some control when they outsource. Also, the quality of goods may be compromised due to a lack of control. Lastly, there can be security and confidentiality issues, especially when dealing with personal data.