Arguments Against Outsourcing

The emergence of new business models means embracing new ways of doing business, thus outsourcing has become standard in many industries. Outsourcing distributes contract work to a third-party company. However, opponents of the practice argue against it on several grounds.

Language barriers

Outsourcing customer service and technical support, which has become standard in many companies, often takes advantage of off-shore labor, which may accept a lower wage. Sometimes, however, workers do not have a full grasp of the English language, especially conversational English. The frustration this causes may cause customers to defect to a competitor, and in the worst cases, badmouth the company on the internet.

Employee knowledge

Outsourcing can erode institutional knowledge carried by employees.. Thorough training programs and carefully scripted support helps outscored support resolve issues, but this preparation cannot replace the knowledge an employee would have if he was in-house. Greater access to institutional knowledge also allows new employees to train more quickly and effectively.

Security

The most serious problem with outsourcing is probably is security. The fact that most outsourcing occurs overseas in less developed countries means a higher risk of data breaches Reports of stolen identities, checking account numbers and even social security numbers are common. Differing regulations may make it difficult to prosecute offenders. Companies must always ensure an outsourcing company is trustworthy.

The debate over outsourcing continues, and although the lowered costs give a key advantage, the lost security, customer satisfaction and effectiveness may eventually cause companies to lose customers. Since retaining customers is essential to businesses, the advantages of outsourcing might not outweigh the disadvantages.