OUTSOURCING BENEFITS AND COMPLICATIONS

Abstract

This research is theoretical, and its purpose was to explore literatures on the relationship between outsourcing benefits and complications. The paper offers a detailed assessment of outsourcing as a concept and its benefits and implications to organizations. This study was conducted adopting a qualitative secondary data from newspapers, journals, articles, textbooks, dissertations and internet.The core-competency theory, resource-based theory and transaction theory were adopted as the theoretical foundation for the study, and it offered a strong position in support of the importance of focusing on core competency as basis for outsourcing decision, this research also posit that assets or resources that give the organization competitive advantage should be kept in-house. The position reached based are on the harmony of views, identify clearly outsourcing as commendable and required for the efficient functioning of organizations today. On this note, it was concluded that the features of cost and organizational operations are efficiently addressed through the adoption of outsourcing practices and behaviour which are strategic and which allow for the organizations to focus on its own key and primary functions. The study recommended that the practice of outsourcing should be such that emphasis is focused more on the additional functions and areas identified as weak or overly costly to the organization. Such features can be addressed through a shift in responsibilities to other organizations which are more proficient and structured for that purpose.