Disadvantages
Online Outsourcing also brings many challenges. Meetings are not feasible between service contractors and providers due to the large distances between them. This is not a problem with permanent staff that are based on-site. Thus effective communication becomes a much greater effort.
The situation for the employer varies depending on the nature of the service provider. When outsourcing, a company loses the executive control of the outsourced work process. The longer the outsourcing partnership, the harder it will be to reintegrate the outsourced Know-How through In-sourcing into the company. There is a risk that over time, the fruits of this relationship (the know-how) will be lost within the buyer company.
Moreover, great care must be taken, as when undertaking offshoring, there is the possibility to employ the expertise of service providers from around the world with diverse cultural and linguistic backgrounds. It goes without saying that different work ethics and working styles may also present an issue. Therefore, full and clear communication is crucial to reach a satisfactory conclusion for both sides.
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