Disadvantages of contracting , Other Management

Disadvantages of contracting 

As we saw some of the factors that drive a contracting decision, now let us understand the disadvantages or criticisms associated with contracting in the following areas: 

  • Quality:  The quality of work carried out by a contractor/subcontractor can turn out to be unsatisfactory. This can happen if there is poor buyer-supplier communication or when the buyer makes a wrong assessment of supplier?s capability. 
  • Public opinion:  The public may perceive that the practice of outsourcing damages local labour market and can lead to unemployment.  
  • Language skills:  Call centres often face complaints of low quality service. The complaints usually arise because of linguistic features such as accents; words used and so on which make call centre agents difficult to understand. 
  • Exploitation of work:  Benefits such as medical assistance and retirement are not offered to workers in companies taking up outsourced work.  
  • Staff turnover: This generally happens in call centres where agencies keep changing frequently. This inhibits the pile up of employee knowledge and reduces the performance and quality.   
  • Productivity:  Companies which solely outsource their project for the purpose of saving cost can have negative influence on the productivity of the company. When work is outsourced by a developed country to a developing country, and the workers use hand tools in lieu of the advanced computer controlled machine tools used by workers in the developed country. Hence, the productivity of the offshore workers is lower in reality, although it appears to be higher simply because of the lower wages paid to them in dollars. This gives rise to the perception that the developed country only gains non real productivity by hiring fewer people locally, rather than investing in technology to improve productivity.   
Posted Date: 9/27/2012 3:01:41 AM | Location : United States







Related Discussions:- Disadvantages of contracting , Assignment Help, Ask Question on Disadvantages of contracting , Get Answer, Expert's Help, Disadvantages of contracting Discussions

Write discussion on Disadvantages of contracting
Your posts are moderated
Related Questions
Question 1. Demonstrate the use of analytical tools to monitor the progress and the effect of change Question 2. Assess monitoring and measurement techniques to change within an o

understand the prospect for growth in global services

Purpose and Objectives of Binding : Unlike private collection, books in libraries are to be used by successive groups-be it a public library or an academic library-and hence n

REFERENCE AND INFORMATION  ACCESS TOOLS: Libraries have always been engaged in providing services to their users. Maximum utilization of resources is the principle underlying

STEPS LITERATURE SEARCH  There are many points to consider in making an effective literature search. The first and foremost step is to ascertain the purpose, scope, depth and

Methods Following is a brief description of the prevalent methods of stock taking.  Stock Verification by Accession Numbers:  The  accession numbers of the books from t

QUESTION 1 (a) Compare and contrast the quality culture in a traditional and a TQM organization (b) What do you understand by the PDCA cycle? QUESTION 2 (a) Discuss

QUESTION (i) Compare and contrast the Capital Asset Pricing Model (CAPM) with that of the Arbitrage Pricing Theory (APT) (ii) Asset A has an expected return of 25% and the r

The Ledger System: In this system, the record is kept in the form of a bound register wherein each page is allotted to a  periodical. On top of the page usually, details like

Gestalt Alphabetisation   Ranganathan was following the Gestalt Aplhabetisation to a severe degree in the earlier editions of CCC up to the 3rd edition published in 1951. In th