The risks of privatizing in your comany- Is it worth it?

Privatization is a trending hot topic in recent years that has many companies going back and forth on the idea. The long term effects are much greater than the short term effects that can be placed onto a company. Lets start with the short term first. Outsourcing is a great way to decrease employment on the home front, all the while decreasing lower wages to employees overseas. It can save the company a large quantity of money over time. Although this sounds great in retrospect, its anything but. By outsourcing the jobs, you end up losing qualified, loyal, and veteran employees that are crucial to the company. Not to mention the money it will cost after losing them. Who is accountable if something goes wrong?? ultimately the company is and that brings even bigger issues like going deeper into debt. Outsourcing contracts can turn into disasters because they are poorly thought out. Saving time and money can look great at first, but when something goes wrong, it goes terribly wrong. Many times it is easier to keep government employees versus an outside source. It can also lower the morale of the company as a whole. Privatization has its advantages and disadvantages, its short term effects and long term effects. Companies should take a very close look at the costs and damages privatization could possibly do before signing on the dotted line. Although pretty on the outside, it could be ugly on the inside.

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