Question

Outsourcing can help companies produce goods and services cheaper than producing those same goods and services in-house.

Discuss what challenges or risks might be associated with outsourcing.

What characteristics of goods (or services) might make them candidates for profitable outsourcing?

Answer 1

Outsourcing:

outsourcing is a business strategy in which the company gives certain tasks to some another company or individual.that are previously done by its own employees.the outsourcing company provides all facility like workers and computer system to do the task and they complete work either from its own locations or the original company's location.

There are so many risks associated with the outsourcing we can discuss it ,

main thing is that if we try to outsource some tasks it will takes more time to complete the main reason is that it may need more legal proceedings from both sides.then next problem may arise is that security issues we know that outsourcing means make a contract with some others may be there is a chance of sharing of confidential information if any issue arise in the relation between two may the confidential data leak happen.some times company persons may face some issues in contacting with the contract given company may be a delay the this delay may affect the production speed and related issues with the contract given company.

we know that outsourcing is done to lower the costs mainly.let us consider we need some professional service like legal service if the company hiring an employee for this service company need to provide every benefits and salary for that person so it make high expenditure but if we give it as a outsourcing work that means we try to find a freelancer for that work it is very cost effective.

we wish our companies physical product need to be manufactured outside our company if it causes high expenditure while manufacturing in our company,out side our state cost effectively we can find a company that matches with our requirement and we can outsource with it.

if certain company needs to perform certain modification on a project that means may be a redesign,if the company may not have a designer then they need to hire one at that time it causes more expenditure to reduce this they can make it as anoutsourcing work.