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dvantages also underlying to outsourcing namely enhanced dependency on supplier, employee redundancy, loss of control, increased expenditure due to ‘hidden’ outsourcing costs (Douglas and Meehan, 2001). According to Prahalad and Hamel (1990) every organization needs to identify, cultivate and exploit their core competencies in order to grow. Competitive advantage might be lost if core business are outsourced. Therefore, it should be seen by the company that no mistakes are made in identifying core competence. Significant Knowledge of the company will fade off if core activities are outsourced which is difficult to rebuild once lost.

Bonifazi et al. (2004) views ten traps in an outsourcing project that should be taken into consideration during the implementation of the project. To begin with, lack of management commitment; lack of communication plan; minimal knowledge and experience of supplier; failure to recognize outsourcing risks by companies; failure to obtain outside outsourcing professionals; failure to utilize internal resources by organizations; rushing through vendor selection; ignoring cultural differences; minimizing vendor productivity; the last trap described is the failure caused by not understanding the ongoing outsourcing relationship with the vendor.

Diminishing quality service and insufficient flexibility in achieving the desired results also contributes towards outsourcing risks. All these risks should be considered at the time of contract formulation. By designing a proper contract outsourcing risks may be well protected (Andrade & Chapman, 1998). The whole structure of the organization can be affected by a single outsourcing agreement.

Common Outcomes

Outsourcing is a powerful corporate strategy that requires flexibility in the sense global business takes place. Used effectively, outsourcing can very well live up to the standards set in the beginning of the agreement (Bonifazi et al., 2004). But, if used ineffectively the agreement may culminate in search of another vendor or by bringing the outsourced activity back ‘in-house’ (Andrade & Chapman, 1998).

Backsourcing

Backsourcing currently lacks a common definition. However, Andrade & Chapman (1998) gives a definition which is easier to understand once the term outsourcing is understood. He defines backsourcing as process of bringing back outsourced functions in-house. When an activity originally performed internally by the company and then contracted out to a vendor, is brought back in-house is referred to as ‘backsourcing’ (Andrade & Chapman, 1998). Backsourcing is often mistaken as insourcing. But, both of them deviate on the aspect that insourcing is bringing back the functions in-house that were never outsourced but initially contracted out while in backsourcing the functions that were outsourced is brought back home. In other words, in backsourcing the activities must have been previously outsourced.

Motives for Backsourcing

A company may end an outsourcing contract even if everything was all right. The reasons being behind this may be that the company would ha本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。