Advantages might include
  • Allows you to focus on your core activities
  • Costs are easier to budget because they are fixed in contractual agreements
  • Cost-effective
  • Streamlined use of resources
  • Increased staffing flexibility
  • Increased quality of service through specialisation
  • Shared risks and rewards
  • Accommodates peaks and valleys in demand
Possible disadvantages include:
    • Loss of managerial control
    • Hidden expenditure, including legal costs
    • Threat to security and confidentiality
    • Decreased employee security and satisfaction
    • Quality problems
    • Tied to a contractual agreement