The benefits of outsourcing is to reduce the costs, to increase energy and time, to focus on an
organizations core competencies; access to technology and specialized expertise, which result in
increased level of service, and reduce the amount of troublesome errors. It is not always possible
as the external provider can have complications identifying the needs of the organization. This
was the case with TI Canada; they had outsourced their payroll function to the external provider
that resulted in many errors, and additional costs. Here, in this case, Dawn prepared some
estimation in regards to prepare these payrolls internally and minimizing the errors, in order to
reduce the cost, energy, and time of organization, as well used
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A person needs to be assigned to monitor the services; in complex
arrangements, sometimes it might take a team called the “stay back team” to do the monitoring.
Here, in this scenario, by providing the services internally, it is more possible to monitor the
services closely, which might reduce the chances of errors done by the internal provider. TI
Canada mainly focuses on its capability of innovating products and providing an excellent
customer services. In order to be more efficient and reduce costs, the service must be accurate
and free of errors. Here, Dawn had to get rid of all those errors, by fixing it internally. Thus,
while outsourcing the work, it is important that the organization receives the expected services
from the external provider, otherwise they have to get these services finished internally for an
unwanted additional cost.
However, the main concern is that the external provider will have all the employees’ records
including their banking and credit information. As discussed earlier the issue TI Canada facing is
regarding its payroll activities which they outsourced to an external provider and ended up with
several transactional error. Dawn McWhirter is to make a decision as she spent a large amount