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Cost-Saving and Risks in Outsourcing Services

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Cost-saving, according to what survey or collective piece of surveys, is still one of the top outsourcing concerns that companies focus on when deciding to outsource some of their services.

Piggy Bank Saving Calculator with Outsourcing

While the economy is still recovering from recession, outsourcing is still one of the sought-after services today. With various services that have branched out, outsourcing can certainly cater to various needs of your company. May it be for businesses are too general, be specific, information technology, human resource, or even legal tasks, outsourcing definitely has the right services for you.

Areas Commonly Outsourced

Countries that had its fair share of economic downfall, adopted outsourcing branches including Business Process Outsourcing (BPO), Knowledge Process Outsourcing (KPO), and Legal Process Outsourcing (LPO).

Studies reveal that among business applications, the most commonly outsourced tasks are database-related jobs and web site hosting.

Risks in Outsourcing

Outsourcing has its rewards and risks, and companies are aware of the advantages and drawbacks that outsourcing have to offer. Various drawbacks have been associated with outsourcing. Yet, three are considered as the top disadvantages that concerns companies. These are: data security, contract lock- in, and vendor management.