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virtual office jakarta .....  Build Operate Transfer Services Outsourcing has been around for a very long time, but most people tend to believe it is a new phenomenon. Many businesses across US and other developed countries over the past couple of decades have been outsourcing a large chunk of their businesses to gain a strategic advantage over their competitors. One of the biggest changes in recent years has come from the growth of using various technologies to use outsourcing as a way to build a viable service delivery business that can be run from any location worldwide. Organizations looking to outsource a particular aspect of their business should spend time to evaluate and prepare themselves for the various pros and cons associated with Outsourcing. We have listed a few Pros and Cons based on the outsourcing experience of numerous businesses. Benefits of Outsourcing (Pros):

 In a competitive global market in which companies are constantly trying new methods to attract new customers and retain them, this definitely gives your business a strategic advantage over them. Focus on Core Business: - Resources (People, Infrastructure, Technology and Capital) can be utilized in a more focused and strategic manner to develop the business. By outsourcing certain aspects of the business that are not focused on business development or customer service, you allow your resources to target activities that gets you results. Scalability: - Based on the efforts your organization puts for getting new customers or new business, it is the responsibility of the vendor to provide adequate support. The outsourced vendor usually have the expertise, infrastructure and resource pool to handle scalable requirements of the your business. Specialized Expertise and Knowledge: - Through outsourcing you gain access to service providers who have years of knowledge and expertise to effectively and efficiently handle your outsourcing requirements. This point in itself is one of the primary reasons behind which organizations look to outsource their non core as well as in some cases even a part of their core business operations. Vendors providing expertise services in certain business verticals help by providing access to operational best practices, that would be too difficult or time consuming to develop in-house. Cost Benefits: - There are many cost related benefits associated with outsourcing.

 As outlined in one of the points above (Focus on Core Business), by outsourcing companies do not have to invest capital in infrastructure, technology and manpower. This allows organizations to pass on the cost benefits to their customers on products or services offered, which otherwise would not be feasible.  Disadvantages of Outsourcing (Cons): The most obvious disadvantage of outsourcing is the loss of managerial control: - When you sign a contract to have another company perform the function of your department, you are turning the management control of that function over to another company. In order to keep a check on the work whether it is running as per your requirement and standards you need to monitor the operations by regular reports and communication with the key people at the outsourced company.  No communication for a long time may cause deviation in the way of handling the work. Threat to Security and Confidentiality: - The heart of any business is the information that keeps it running.

 If you have payroll, medical records or any other confidential information that will be transmitted to the outsourcing company, there is a risk that the confidentiality may be compromised. If the outsourced function involves sharing proprietary company data or knowledge (e. g. SSN, customer specific info, formulas, etc . ), then the following actions must be taken into account. First, you must evaluate the outsourcing company carefully and ensure that they have proper data protection policies in place. In addition to this, you could also verify if the company has ISMS (Information Security Management System), ISO certifications in place. Companies that have such certifications ensure that their client's data is protected. They also conduct trainings for their employees to make them aware of the importance and data security. Tied to the Financial condition of the partner Company: - Since you will be turning part of your business to another company, you must have knowledge about the financial well-being of that company. You may want to prefer working with a company who has multiple clients other than you as well as is associated with few clients for couple of years. That will give you confidence of associating and working with that company.