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Outsourcing means delegating none core activities to an external expert to supply the materials or the products to the organization. outsourcing is necessary when there is no enough capacity for in-house manufacturing, when there is no expert to help in the production, when the activity is not core to the organization.
If an organization outsource IT responsibilities to an external service providers, it will enjoy the following benefits:
!. The company will be will be able to concentrate on other core activities of the business like manufacturing and providing other services.
2. The company will be able to get the best product or best IT services since the company which is tasked to do the IT services has dedicated experts.
At the same time, outsourcing may have detrimental effects to the organization, for example:
1. The threat of leaking the organizations key business secrets to the competitors in the industry.
2. There is the issue of increased cost of the services, costs may exist the option of making in-house.
some health-care functions which cannot be attained in-house includes:
1. Production of lab machines like stethoscopes and therefore they have to buy from outside.
2. Training their own doctors, it is only few doctors which can train their own students to become doctors, this is challenged by lack of capacity.
3. Medicine production, this is a costly and a tough task which require experts and money and therefore hospitals has to outsource.
If hospital fail to allocate enough funds for buying medicines and paying doctors, it will be hard to offer the service.
Proper funds allocation will mitigate any risk which is like to arise.
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