The Role of Outsourcing in Global Media Organizations - Term Paper Example

NАLYZЕ THE DIFFERENT ROLE РLАYЕD BY ОUTSОURСING IN GLOBAL MEDIA ОRGАNISАTIОNS; IS THЕRЕ АN INЕVITАBLЕ TENSION BЕTWЕЕN INTЕRNАTIОNАL MEDIA ОRGАNISАTIОNS AND ‘LОСАL’ СULTURЕS Name Institution Professor Course Date Аnаlyzе the different role рlаyеd by оutsоurсing in global media оrgаnisаtiоns; is there an inеvitаblе tension bеtwееn intеrnаtiоnаl media оrgаnisаtiоns and ‘lосаl’ сulturеs Table of Contents Table of Contents 2 Introduction 3 Overview of Outsourcing 3 Role of Outsourcing in Global Media Organizations 4 Concentration of essential (core) business areas 4 Excellent Technology 5 Human Resource 6 Production 7 Competition 8 Increased Efficiency 9 Free Internal resources 10 Inеvitаblе tension bеtwееn intеrnаtiоnаl media оrgаnisаtiоns and ‘lосаl’ сulturеs 11 Conclusion 13 List of References 15 Introduction From an elementary definition, outsourcing refers to the ability and tendency of an organization or business entity to obtain goods or services from an outside or foreign suppler particularly in place of an internal source. The concept is vital in enabling business entities to focus on other business issues while having the details taken care of by foreign or outside experts in the field of operation. From this illustration, outsourcing simply means the act of going ‘out’ to find the ‘source’ you need as business entity in the course of handling the needs and preferences of consumers in the market and industry of transaction. The purpose of this research essay is to evaluate and assess the role of outsourcing in global media organizations with the intention of achieving effectiveness and efficiency in the service delivery. In addition, the essay will concentrate on examination of the potential inevitable tension between international media organizations and ‘local’ cultures. Overview of Outsourcing Outsourcing comes out as one of the established business tools exploiting the best or effective combination of low cost, but high local and global resources for the achievement of best services or products to diverse consumers within the market and industry of transaction. Large and small business entities have the perfect chance of exploiting one or more outsourcing services with the intention of offering or delivering better customer experience and satisfaction in accordance with the needs and preferences of the consumers. Nevertheless, outsourcing might fool or deceive business entities because of being an attractive proposition in realisation of the business goals and targets. The notion makes it essential for the business entities to offer careful consideration to the benefits and costs of outsourcing with reference to the goals and targets of the business entity while obtaining outsourcing services from destinations such as China, India, Brazil, and Philippines among other sources. However, outsourcing is a way for business entities to save money through elimination and prevention of unexpected costs. This makes it essential for the business entity to consult extensively prior to making the decision to outsource. The approach towards realisation of this target is extensively analysis of the benefits and costs of outsourcing since business entities have the perfect platform to determine the best position to ascertain whether a specific outsourcing service should be outsourced for effectiveness and efficiency in the achievement of competitive advantage. Role of Outsourcing in Global Media Organizations As evident in the introductory paragraph, outsourcing refers to the process through which business entities and global companies focus on delegating processes to third parties or low cost external agencies with the intention of gaining substantial advantages. Some of the potential advantages of outsourcing for business entities include competitive advantage in labour, improvement in quality of products and services, and the overall innovation in the delivery of outputs in accordance with the needs and preferences of the consumers in the market and industry of transaction. Global media organizations focus on adopting and implementing outsourcing as an essential strategic tool rather than a tactical approach towards realisation of competitive advantage in the global market. From this illustration, outsourcing has been essential in achievement of success in the global media organizations. This is through execution of diverse roles, which will feature prominently in this section of the research essay in accordance with the thesis statement. Concentration of essential (core) business areas Outsourcing has been an effective and efficient tool to enable global media organizations to focus on the core business areas with the intention of enhancing effectiveness and efficiency in the service delivery in accordance with the needs and preferences of the consumers. Operations of global media operations require high maintenance as well as specialized attention. This requires such entities to focus on adopting and integrating strategic tools for effectiveness and efficiency in the maintenance of the business operations. One of the vital tools towards realisation of this objective is outsourcing. Global media organisations incorporates outsourcing to facilitate appropriate concentration in diverse business operations and processes thus reduction in the cost of operation while achieving competitive advantage in the market and industry of transaction (Grimpe & Kaiser, 2010). Some of the business operations are critical towards realisation of modern daily activities. Integration of outsourcing has been a revelation towards ensuring that business entities concentrate on their core competencies while specialized third party entities manage other operations within the media fraternity. This is one of the essential roles of outsourcing in the context of global media organisations. From this illustration, outsourcing is a strategic tool, which enables business entities in the global media industry to free diverse energies thus extreme focus on the building of the brand while researching on investment and development of quality approaches for the achievement of efficiency (Palmisano, 2006). Excellent Technology Technology continues to play a critical role aiding the development and growth of globalization in diverse industries inclusive of the media industry. This is because of the massive impact of technology in the development, production, and delivery of goods and services in the modern globalized world (Ernst & Kim, 2002). Outsourcing in the global media organisations is one of the effective and efficient mechanisms towards realisation of efficiency in service delivery. The approach ensures that business organisations in the media industry can obtain excellent technology at lower rates. Technology has a massive role in relation to achievement of competitive advantage in the media industry (Gilley & Rasheed, 2000). Technology is essential in recording, transmission, and decoding information between consumers and the media practitioners thus a crucial tool for the achievement of success in the global context. It is also vital to note that business entities focus on obtaining technology towards automation of the services and delivery of products in accordance with the demands and tastes of the consumers. From this perspective, the importance of technology makes it very expensive and costly to invest thus a risky feature (Whitten & Wakefield, 2006). The rapid development of the technology market makes it difficult for the business entities to keep up with the latest solutions and innovations. In order to address this adversity, business entities in the media industry focus on adopting outsourcing tool with the intention of exploiting services and expertise of the companies with adequate resources and desire. Such outsourcing companies have the perfect chance to obtain valuable information on the solutions and innovations in the technological field hence achievement of competitive advantage in the market and industry of transaction (Dossani & Kenney, 2007). The approach to offer solutions and innovations of technology enables global media organisations to exploiting the real advantage of outsourcing within the competitive market and industry. The above illustration notes that outsourcing is a key role for the business entities to eliminate or minimize the need to invest in technology advancements and innovations since the outsourcing partners take the responsibility of diverse business operations as well as development of infrastructures. Global media organisations have the chance to eliminate costs in technological investment while handling the needs and preferences of the consumers in diverse markets. Human Resource Outsourcing has been a revelation towards aiding the effectiveness and efficiency of the human resources or capital in the transmission of the needs and preferences of consumers through technological tools. The media industry notes the massive role of human resources or labour towards the accomplishment of goals and targets in the course of the fiscal year (Gottfredson, Puryear, & Philips, 2005). On the other hand, effective human resource management tools are critical for the business entities to exploit services by this department within the media fraternity. Outsourcing ensures that global media organisations have the perfect chance to obtain qualified human resources or skilled work force at reduced or affordable costs and prices (Bertrand & Francois, 2003). This makes outsourcing an essential tool towards addressing the needs of the consumers in the market and industry of transaction. From this perspective, outsourcing provides the avenue for global media organisations to get access to skilled as well as trained work force at extremely low rates and prices. The eventual outcome of this massive development is increased level of productivity while enabling global media organisations such as Al Jazeera, CNN, Sky News, BBC, and other entities to reduce the cost of operation. It is essential to note that global media organisations have the ability to save diverse costs in relation to recruitment, training, and other valuable human resource activities, which are essential in internal maintenance of the business entity. Outsourcing ensures that the organisation within the global media industry will have an opportunity to acquire and exploit rare human resource expertise and skills not available in the internal business operations (Mudambi & Venzin, 2010). Production The motive of any business entity in the local and global context is to increase the volume of production with an intention of reducing costs while increasing the level of profits at the end of the fiscal year. For instance, business entity focuses on exploitation of the qualified human resources and personnel to enhance an increase in the production levels in the course of handling diverse needs and preferences of the consumers in the market and industry of transaction. In this context, outsourcing ensures that global media organisations have increased access to human resources at lower rates (Mudambi & Tallman, 2010). The outcome of this development is an increased level of production since the entity has an opportunity to employ skilled work force in large numbers at lower rates or costs. Increased level of production is essential in the achievement of customer satisfaction as well as increased profitability while facilitating the achievement of competitive advantage in the market and industry of operation. Outsourcing has been an essential strategic tool enabling business entities in the global media industry to increase their market coverage as well as size under the influence of reduced costs of operation and quality technology. Competition Competition is an essential component in the globalized economy focusing on the production of quality services and products at relatively reduced costs in procurement and manufacturing. Outsourcing tool has been a revelation in the promotion of the level of competition among competitors within the global media industry (Insinga & Werle, 2000). It is the duty of the business entity to acquire competitive advantage through diverse means such as generation of quality products, charging relatively affordable prices, and operating in large economies of scale for effectiveness and efficiency in the delivery and distribution of services and products. Outsourcing enables global media organisations to acquire competitive advantage through increased concentrations on the core business competence, acquisition of highly trained human resources, and increased level of production within the financial year. It is ideal to note that globalization of the economy has been a factor to consider by media entities in the course of offering high-quality services and products to the consumers with the objective of retaining them hence an opportunity for achievement of profitability (Luo, 2005). In addition, global media organisations have opportunities to offer quality products and services at lower rates and prices under the influence of outsourcing. In this context, outsourcing enables business entities to maintain provision of services and products at lower rates with better technological solutions and innovations thus acquisition of a better market position under the influence of competitive advantage. Increased Efficiency In case business entity outsources its needs to an outsourcing firm with expertise and valuable experience, the outcome is evident in the overall increased efficiency levels in the course of the fiscal year (Harland et al, 2005). In this context, global media organisations have the perfect chance to exploit quality business practices and expertise in the development of a complex business environment vital in the achievement of effectiveness and efficiency in the service delivery. Similarly, the approach is ideal towards exploitation of knowledge and understanding of the outsourcing vendors in the global context to facilitate the achievement of competitive advantage in the market and industry of transaction (Kakabadse & Kakabadse, 2002). The outcome of this practice is an increase in efficiency as well as quality production mechanisms thus the overall profitability levels at the end of the financial year. In addition, the global media organisations have the ability to generate faster and better services while reducing the cost of operations hence an illustration of the increased efficiency towards accomplishment of competitive advantage against major competitors. From this illustration, business entity will have the opportunity to enjoy high quality deliverables while minimizing the amount of time it takes to handle the needs and preferences of the consumers at the end of the fiscal year (Grossman & Helpman, 2001). The illustration notes the massive importance of outsourcing in handling the functions of the business entities in the global media industry thus concentration on the skills and expertise of the human resources for efficiency and effectiveness in the service and products delivery. Free Internal resources The purpose of outsourcing in any business entity is to facilitate effectiveness and efficiency in the delivery of products and services in accordance with the needs and preferences of the consumers. In this context, outsourcing focuses on minimization of the time and resources towards accomplishment of competitive advantage in the market and industry while offering or delivering products and services in accordance with the needs and preferences of the consumers. In the course of achieving these goals and targets, business entities have the perfect platform to free internal resources for other operations and purposes. The freed resources would be ideal towards improvement of the ability and competence of the business entity in staging and sustaining substantial competition in the global media market. From the approach, it is critical for the business entities to outsource key resources and services such as IT to facilitate increased engagement in certain areas of importance in the course of the fiscal year. On the other hand, the organisations have the obligation of understanding their needs as well as available resources prior to making an appropriate decision on outsourcing of services to facilitate the achievement of effectiveness and efficiency in the delivery of products and services at the end of the fiscal period (Olson, 2007). Conclusively, outsourcing has been a critical business tool for the global media organisations in the pursuit of their organisational goals and targets while addressing diverse needs and preferences of the consumers at the end of the fiscal period. The strategic tool has been ideal in enhancing the ability of the business entities within this industry to increase effectiveness and efficiency in handling the needs of consumers in the market and industry of operation. For instance, outsourcing is critical in the achievement of increased focus on the other business core functions thus an opportunity to free resources for different operations. In addition, global media organisations incorporates outsourcing to facilitate appropriate concentration in diverse business operations and processes thus reduction in the cost of operation while achieving competitive advantage in the market and industry of transaction. The concept of outsourcing is vital in enabling business entities to focus on other business issues while having the details taken care of by foreign or outside experts in the field of operation. Inеvitаblе tension bеtwееn intеrnаtiоnаl media оrgаnisаtiоns and ‘lосаl’ сulturеs There is inevitable tension between international media organisations and local cultures. This is because of the elements of conflicts in relation to the concept of globalization in the modern society under the influence of outsourcing. Globalization refers to an intensification of worldwide social relations, which link or join distant localities in such a way that local happenings undergo critical reshaping by events occurring many miles away and vice versa. Globalization proves to be a dialectical process because local happenings might move in an obverse direction from the much-distanced relations that play critical roles in shaping them under the influence of technological advancements. It is essential to note that outsourcing and globalization have been essential in realization of local transformations because of the social connections with reference to time and space (Nicholls-Nixon & Woo, 2003). On the other hand, it is ideal to note the presence and role of neo-liberal ideology making globalization inevitable, natural, and beneficial regardless of the conflict with the local cultures in accordance with the needs and preferences of the natives in diverse nations across the globe. One of the sources of conflict between international media organisations and local cultures is the increase in reflexivity. The modern society is reflexive in character. The essence of social reflexivity is evident in the constant flow of information as well as analysis of subjects from different or diverse perceptions. Business entities have the perfect chance to exploit this social reflexivity to achieve their goals and targets while ignoring the local cultures. The impact of technology has been evident in the case of rapid globalization as well as adoption of diverse cultures to adhere to the needs and preferences of the consumers. For instance, international media organisations focus on adopting and implementing programs as well as plays in accordance with the demands of the local markets. This reflects on the need to transform the local cultures with the aim of handling the needs of multiculturalism in the global context. There is also the paradoxical effect or facet of globalization in generation of the conflict between international media organisations and the local cultures. At one instance, globalization focuses on homogenising of global cultures for effective handling of diverse needs and preferences. On the other hand, globalization as an element of outsourcing increases the awareness of social heterogeneity thus an opportunity for the individuals to understand their cultural diversity (Yuan et al, 2010). From this perspective, groups whose identity and solidarity is based on race, ethnicity, religion, and language have become increasingly vocal thus massive exploitation of the global media to make their discontent known in the global context. The diversity in cultural perspective has been essential in the generation of conflict between the local cultures and international media organisations in the course of outsourcing valuable resources in accordance with the needs and preferences of the business entities within the global media industry. In the case of outsourced human resources, there might be difficulties in blending in with the local cultures because of the culture shock and diversity in perception from the individuals working in the foreign nation. Another source of conflict between the international media organisations and the local cultures emanate from the negative impact of outsourcing with reference to loss of managerial control. In the course of outsourcing critical functions, business companies tend to turn the management and control of such functions over to another company. This is seen as the major source of conflict between international media organisations and local cultures. The natives believe on their expertise and experiences to handle such activities (Tafti, 2005). The essence of outsourcing ensures the existence of inevitable conflict between the two entities thus the need by practitioners to evaluate key sources of resources for efficiency and effectiveness in the delivery of services. There is also misunderstanding between the international media organisations and local cultures or individuals within the nation of operation (Pyndt & Pedersen, 2006). The negative impact of globalization is complex integration of cultures in the global context. In order to avoid such conflicts, it is critical for the business entities and practitioners to have substantial multicultural expertise for accommodation and understanding of the diversity in cultural background. Similarly, the international media organisations should tailor products in accordance with the needs and preferences of the consumers in the local or native markets. This is critical towards reduction in the conflict between international media organisations and local cultures thus effectiveness and efficiency in exploitation of globalization and outsourcing as appropriate tools towards the achievement of competitive advantage in the market and industry of operation. Conclusion Outsourcing refers to the ability and tendency of an organization or business entity to obtain goods or services from an outside or foreign suppler particularly in place of an internal source. It refers to the act of going ‘out’ to find the ‘source’ you need as business entity in the course of handling the needs and preferences of consumers in the market and industry of transaction. Outsourcing has been an effective and competent tool to enable global media organizations to focus on the core business areas with the intention of enhancing effectiveness and efficiency in the service delivery in accordance with the needs and preferences of the consumers. The rapid development of the technology market makes it difficult for the business entities to keep up with the latest solutions and innovations. From this perspective, business entities in the media industry focus on adopting outsourcing tool with the intention of exploiting services and expertise of the companies with adequate resources and desire. 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