ABSTRACT
Outsourcing offers several advantages, which include enabling existing staff to concentrate on core competencies, focusing on achieving key strategic objectives, lowering or stabilizing overhead costs, obtaining cost competitiveness over the competition, providing flexibility in responding to market conditions, and reducing investments in high technology. There are also several disadvantages to outsourcing agreements, which include becoming dependent on an outside supplier for services, failing to realize the purported cost savings from outsourcing, locking into a negative relationship, losing control over critical functions, and lowering the morale of permanent employees.
