Question

Case study Analysis of Outsourcing Big Savings Big Risks

Answer 1

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The main idea for employing outsourcing is to continue the valued services even when there is a shortage of experienced professionals. But it is also being employed in various other situations. For example, theoretically it costs less than training the employees and then appointing them to the fields. In a way it reduces opportunities for jobs. This is one of the biggest problems of outsourcing. It just circulates the same professionals in the market so that there is less scope for producing ideas for improvement, unemployment will rise. This problem is non technological.

The major technological problem of outsourcing is the cyber security that could be under serious threat. For example, if a company wants to provide IT services in a country, but it could not provide professionals, it would resort to outsourcing by employing the local employees. But this puts the organisation's privacy at risk and the employed professionals may use this opportunity in a way that could lead to very severe national security problems. In order to prevent such a situation, it is very important to ensure that system is very tightly secured, so that any unusual activity can be very vigilantly discovered. It can be done by putting up firewalls, and other software necessary specifically designed so that it is complex for outsiders but not for the organisation's employees.