Outsourcing Strategic Management and Company - 2763 Words

Outsourcing Outsourcing is a business strategy that has been around since the eighties and has grown in popularity year after year since. There should be advantages to outsourcing for this trend to occur. There are however certain types of companies that would disagree with this method. Outsourcing has become one of the most controversial issues in business today. This report will explore different approaches on this matter to try and understand whether outsourcing is always the best option or not. It will study the advantages and disadvantages of outsourcing and insourcing, why some companies prefer one as opposed to the other and finally the factors that affect their decision, such as environment and cost. The definition of the term†¦show more content†¦Finally, Knowledge process outsourcing also known as KPO, includes advanced research, analytical and technical skills. Whilst in BPO the process is led by the client, in KPO consultants are in managerial control. This type of outsourcing is the oldest and is usually used in short term and exterior ventures. Examples of KPO include: pharmaceutical research and development, intellectual property research, content writing, and database development services. As mentioned previously one of the main advantages and reasons for outsourcing is cost. Sometimes outsourcing certain business processes to other countries can offer the same level of quality at a much lower cost, this is known as offshoring. A company may do this as it can be much more cost effective or as a strategic move, for instance if they are looking at entering a new market or trying to overcome protocols that may stop certain tasks taking place in their own country. According to Sourcing Mag, India is one of the most common countries that England offshores to when it comes to BPO, especially in software, as English is widely spoken and there are many highly trained software engineers. India has become the world’s back office provider, from call centres and claims processing to human resources, accounting and even legal operations. Almost 40 per cent of American Express’s back office processing is outsourced to India; Citibank has more than 2000 directShow MoreR elated It Outsourcing Essay1029 Words   |  5 PagesIt Outsourcing INTRODUCTION Companies are increasingly outsourcing the management of information technology (IT) for reasons that include concern for cost and quality, lagging IT performance, supplier pressure, access to special technical and application skills, and other financial factors. The outsourcing solution is acceptable to large and small firms alike because strategic alliances are now more common and the IT environment is changing rapidly. REASON TO OUTSOURCE Although the mixRead MoreWhat Major Trends Do You See Affecting The Roles Of Purchasing Managers During The Next Decade?1447 Words   |  6 Pagesshaped global commerce over the last 50 years will change dramatically. More and more global company will have their purchasing managers based in China, India or Brazil. The procurement teams need to start developing expertise in local emerging market sourcing in China, Brazil, and India, as well as other developing economies. Sustainability is an essential strategy to business, especially the global company. Procurement function will move beyond managing cost and seek to develop supply chains thatRead MoreEssay on IBM Case Analysis1705 Words   |  7 Pagesworld’s largest information technology company, with 80 years of leadership in helping businesses innovate. Drawing on resources from across IBM and key Business Partners, IBM offers a wide range of services, solutions and technologies that enable customers, small, medium, and large, to take full advantage of the new era of e-business. This paper will present a brief overview of the company, including a brief SWOT analysis, and a review of the marketing, management, and financial aspects of the firmRead MoreHuman Resource Strategy : A Review992 Words   |  4 Pages Human Resource Strategy: A Review of the Literature Alyise Johnson University of Maryland University College April 27, 2015 Introduction Strategic Human Resource Management (SHRM) can be defined as the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that fosters innovation, flexibility and competitive advantages. It is an approach to the development and implementationRead MoreOutsourcing American Jobs Essay1561 Words   |  7 PagesIntroduction Outsourcing of American jobs overseas is displacing Americans in the United States. American blue-collar workers and the Middle Class American will soon be a word of the past if the US government continues outsourcing the low-skill jobs overseas. One of the concerns in regards to the outsourcing of jobs is that wages of American jobs versus the wages of the Chinese, Japanese, Indians and Philippians are much less. If these workers were using the same identical technologyRead MoreRelationship Between The Customer And The Company Essay1203 Words   |  5 PagesSolution: The relationship between the customer and the company is the product and the relation between the customer and outsourcing, for example, if you think about it like amazon, where you request the product from amazon, however, it comes to you using the outsourcing which is the UPS and there is agreement business relationship between the company and outsourcing. Also, when you try to call apple customer service you are calling the company, however, the real contact between you (customer) andRead MoreOutsourcing Essay1121 Words   |  5 PagesOutsourcing Outsourcing is when a company purchases products or services from an outside supplier rather than performing the same work within its own facilities, in order to cut costs. In other words, outsourcing is an organizations contractual relationship with a specialized outside service provider for work traditionally done internally by that organization. The decision to outsource is a major strategic one for most companies because it involves weighing the potential cost saving againstRead MoreA Framework For Supply Chains Logistics Operations Essay1283 Words   |  6 Pageslogistics and supply chain management. Porter s Value Chain image below explains the value chain analysis to help add value to the company. The value chains primary activities are implemented through logistics and supply chain management through: †¢ Inbound and outbound logistics †¢ Production †¢ Sales and marketing The value chains support activities are implemented through logistics and supply chain management through: †¢ Administrative infrastructure †¢ Human resource management †¢ Information technologyRead MoreStrategy Management : Multinational Corporations And Other Industries Essay1366 Words   |  6 Pages147651 ASSIGNMENT-6 Strategy management in organizations: Multinational corporations and other industries have strategic management departments set up in order to design and implement strategies. Strategic management is formed with managers from various teams and with several years of experience. The best thing about the strategic management team is that refer to previous years of data and history of the organization in designing the strategies. Strategy management team in an organization is veryRead MoreStrategic Sourcing Of A Supply Chain Management1271 Words   |  6 PagesResponsible Sourcing Before a supply chain manager can truly understand strategic sourcing, they must have a good working knowledge of the purchasing and procurement processes, which I will explain in detail later in my research. Strategic sourcing is an aspect of supply chain management that is becoming more prevalent in the business world. Without strategic sourcing a firm will not and cannot maximize the potential of its supply chain and altogether meet the company’s overall business goals