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Assist a fast-growth situation and handle overflow situations: As most SMEs aim to expand their businesses, and due to globalization, they tend to grow fast when the economy is good. At times, there may be over demand from the market, so outsourcing helps to meet deadlines (Yvonne et al, 1998) and ease things through these situations.

Share risk: Both SME and the outsource provider share the risk, given clauses being signed on contract.

Some local SMEs may not be able to outsource certain functions of their business processes as they may not have the financial support like MNCs.

Lack of managerial control – It may be harder to manage external vendors as compared to own employees. ‘Moreover, it is a major disadvantage when a SME wants to fire an incompetent outsource provider as both parties has already signed a long term contract’ (Steven R. & Judith R., 1999, pp 546)

Lack of quality control: There is a major worldwide Recall from Toyota during early 2010 due to faulty gas pedal. A design failure & manufacturing fault by outsourcing provider. (Scott D., 2010). Another example is the recently launched iPhone 4. It has a design fault, causing signal reception problem for users worldwide. Apple has to bear the cost of sending out the extra ‘metal piece’ to consumers to attach onto their iPhone 4 as an antenna for better signals. They would also have to check whether their suppliers & manufacturers are able to keep up to supply the new “add-on”. All this can be actually avoided if quality control has been in place.

Outsourcing company goes out of business - If your outsourcing service provider goes bankrupt or closes down business, the company will have to take imMediate action to change to a new one or take the process back in-house. Example of a held hostage situation in an outsourced manufacturing strategy experienced by SMEs.. There is an airport closure due to riots. Thailand in the year 2008 has uplifted all cargo as there were no flights taking place during the one week duration.  An example is the product such as flowers is in the perishable category.  All items in the airport ready for delivery to customer on Just in Time (JIT) basis have affected production schedule as supply was unable to meet demand in the production lines has caused line down issues in most of the production plants around the world.

It may be more expensive – Even though the main driver for outsourcing is cost reduction, sometimes it is cheaper to keep a process in-house. In the experience of the writer, Marketing efforts such as designing can be kept in-house, it is cheaper and advisable to hire a designer than to outsource to design firms. As it is a culture to multi-task when working in Singapore, especially in a SME environment. A designer may be asked to perform other work duties such as administration or even sales.

Data security, confidentiality & ethical issues - HR processes such as payroll, confidential information such as salary will be known to the outsourcing provider. Although both parties can sign an undertaking, but no one can really guarantee if a staff of th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。