The effects of outsourcing

More and more companies outsource one or more business processes – the so-called outsourcing. Neomie Raas Sens, PhD student at the Faculty of Economics, studied the effects of it.

Outsourcing has important advantages, such as a reduction of labor costs and added capacity. But it also has disadvantages – such as less or no control over the process that is outsourced.

To see how outsourcing is assessed, Raas Sens researched the evaluations of investors in outsourcing – in the field of customer service, new product development and manufacturing. Although these evaluations were generally positive, half of the companies received a negative assessment.

Investors  judged outsourcing of customer services negatively when it concerned personal or technical customer services, and in case of  major cultural differences between the company and the outsourcing partner.  It had a positive effect when a company had selected more outsourcing partners. [TvN/transl. YV]

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