Third party personnel are people who are outsourced from outside. These are people who are not based in-house of a certain firm. The firm entrusts them to carry out business on their behalf. NetSuite solution providers are viewed as third parties to the firm. They have responsibilities of selling out software’s and applications to clients. The firm has gone a step further and allowed them to issue licenses on its behalf. With the above level of trust the firm has entrusted on NetSuite service providers risks associated with them can’t be ignored. A number of risks are associated with them. Ignoring the risks some advantages of outsourcing include:
- Minimize costs.
Third party personnel are known to minimize the operating costs of a firm. Take an example where they come with their own equipment, for instance computers. Since they make use of their computers rather than the companies computers, this reduces costs. The firm would have been obliged to buy new computers to accommodate the increased work force
- Enriching in-house employees with new knowledge.
Outsourced workers have different qualifications compared to in-house employees. Though their training might be the same at some point methods used differ. Outsourced workers may have knowledge on something different. Through apprenticeship in-house workers learn from the new personnel. In some cases the outsourced worked may be required to manually equip old employees with the knowledge.
- Risk mitigation.
Firms with outsourced work force are known to manage labor risks adequately. Most of in-house workers belong to labor unions, which is their right. On the other hand outsourced workers rarely align themselves to unions. In a case of a labor union calling for mass actions, some level of risk arises. It is the right of in-house workers to join in demonstrations. During the demonstration period the outsourced workers step in and production goes on.
On the other hand few risks are associated with third personnel workers. A few of the risks may include;
Inadequate monitoring of the providers is a common occurrence. Since they are not based inside the firm the management has little control over their undertakings. Though most of them are required to report to the work place regularly, this may not be an enough remedy to the problem. Still most of the time they transact business without supervision. This fact leads to confidential information security alarms. Since the NetSuite providers have access to the companies’ login details and passwords, information may still land in wrong hands. In such cases you may not be quite certain who else they shared the details with. Once the accounts are accessed by the wrong hands malicious activities may take place. In some instances the accounts might be hacked too. Though the firm has put various security checks and tests in order to assess the providers honest and trust levels, loop holes still exist.
Poor service delivery may occur in some instances. Since the NetSuite service providers are paid a lower amount compared to their in-house colleagues they may abscond duty. In most cases a higher pay motivates the employee, but when the pay is low they may not offer services to their best level. They may undertake in illegal activities in the name of the mother firm in order to earn extra cash. The providers stand nothing to lose but the firm gains a bad reputation. This has negative impact on the firm and its software products. People may shy away from buying the products.