Chris Cantell Discusses Technologies: Is outsourcing good for the company? by kristina leskova

Many companies in the world use outsourcing. It means that some of the activities they relinquish to other companies. They do this to shorten their costs. Because outsourcing gives you opportunity to do those activities better. Sometimes the company is not able to do that activity so precise, so it uses outsourcing. The company uses the services of specialized company. The company uses it for activities that do not belong to core business. Outsourcing has some advantages – it enables to concentrate on other activities, it shortens the labour and burden costs. But what are the disadvantages? That there are also some risks – you can lose the control over the outsourced activity, you can become depending on your supplier or there is big risk that you will unclassify some data of your customers which are confident. This happens quite often. For example some of the restaurant chains use outsourcing for credit-card processing and so can happen very easily that the third part could come to the customers’ data and misuse it. The biggest competitive advantages are the databases, lists of clients and marketing tools. If you lose this data it influences your business very much. Some of the data have to be whenever and wherever accessible. There are many examples when the companies lost their data. This influenced also the financial situation of the company. What can the companies do? They should control the suppliers of outsourced activities and they should limit the access to confident data. Not every person should see the data.

related story: http://news.yahoo.com/s/ap/20081002/ap_on_hi_te/tec_data_breaches;_ylt=AmBmzNmMXH4m_8LGS2bSTTas0NUE

by kristina leskova for PocketNews (http://pocketnews.tv)

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edited by Beata Biskova