What are the pros & cons of outsourcing?
Third Party Service Providers(TPSPs) • Usually TPSP already has expertise and experience with other clients in similar business lines. • Very competitive pricing / flexibility to assess various TPSPs. • No infrastructural / capital investment. • Payback period very less (usually between 6 months to a year). • Flexibility to source multiple TPSPs. • Flexibility to scale up and down business relationship. • Can exit from one relationship and move to another. • Retains decision-making, therefore relationship with TPSP is clear (fee-based, quality-based); no staff backlash. • As TPSP works towards a profit there is more business commitment. • Customised solutions ensure data security and safety.
