Homework Lance
Course: AMP 415
Voice App outsourcing
Tracey Vest
Mark Empasis
Grand Canyon University
Advantages of outsourcing
Followings are the advantages of outsourcing-
The first advantage of outsourcing is cost saving for which the voice app is interested in doing so. This cost can be used in some other operations which are necessary for the organization.
Outsourcing the non-core functionalities let the organization to focus only on the core business activities. The main activities of the business become center of the organization.
By running back end operations, organization costs are increased, removal of them might cause reduction in overhead.
Risk control is another factor, technical support team consists of human resource and outsourcing of them will keep the organization operations undisturbed.
Satisfied client- customers are experienced well with the aid of outsourcing the technical support team. Customers are the foundation of the company and if they are satisfied, the company can make growth. With the aid of technical support team, voice app can please the customers with their every time ready technical support.
Disadvantage of outsourcing
Followings are the disadvantages of outsourcing-
Risk of Loss of confidentiality and sensitive data-
Outsourcing the technical support team can lead to loss of confidential information as they have no commitment with the organization.
Management losses control on some of the activities in the organization
Dealing with inexperienced technical support team can damage your reputation of the company. So there is always risk associated with the quality of services you provide to your customers. The operations going on under the technical support team will not come under the management of the company. They will work as separate unit. They are only contact basis part of organization.
May be the outsourced technical support team is engaged with some other company and that is why they cannot give 100 percent of their time to our company. In this case, delays and poor quality can be there.
Legal problems and hidden costs issue are always there with third party
Cost benefit analysis and recommendation
Cost in such technical support system varies according to the number of employees involved, number of customer to deal with, hours of functioning and costs of technical needs including the computer systems or any other equipment provided to the technical support team. Outsourcing the technical support team will charge about $20-$35 per hour. If they are providing minimal services like cloud support, etc, they will cost about $150-$200 per month. An agent will involve the cost of about $1.50 per minute while dealing with customers online. The training costs of the executives according to the requirement of Software Company will be $25-45 per hour.
By this cost benefit analysis, it can be said that the outsourcing will be good for the software company. Being busy with the technical support functionality, more human resource, more cost and more stress will be generated within the organization. If they all can be removed by spending some dollars which are much less that the cost needed for own technical support team, then company should outsource the technical support.
References
Rouse, A., &Corbitt, B. (2004). IT-supported business process outsourcing (BPO): The good, the bad and the ugly. PACIS 2004 Proceedings, 126.
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