Outsourcing Disadvantages

Before deciding on outsourcing your company's business process, keep in mind the disadvantages of outsourcing:

1. Less managerial control - It may be harder to manage the outsourcing service provider as compared to managing your own employees.

2. Outsourcing company goes out of business - If your outsourcing service provide goes bankrupt or out of business, your company will have to quickly transition to a new service provider or take the process back in-house.

3. May be more expensive - Sometimes it is cheaper to keep a process in-house as compared to outsourcing.

4. Security and confidentiality issues - If your company is outsourcing business processes such as payroll, confidential information such as salary will be known to the outsourcing service provider.

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