OUTSOURCING AND OFFSHORING - Essay Example

of affiliation: OUTSOURCING AND OFFSHORING Among the major outsourcing companies are Penske Truck Leasing, Wolters Kluwer (WTKWY), and Accenture Lt. On the other hand off shoring companies include Hewitt Associates (HEW), Indias Genpact, Accenture (ACN), and IBM Services. There are many reasons why companies choose to outsource or offshore and this may includes: lack of accessible skills to complete a process, need to change poor internal service, lack of internal resources that serve to accomplish a business process, perceived difficulty with regard to managing the process following the growth of the business.

In other cases an organization may source or offshore when a process can be completed in a better and cheaper manner when using external providers.Companies benefits from outsourcing and off shoring in the following ways: 1. They get time to Focus On Core Activities2. The process reduces the operation Cost and increase Efficiency3. The process increases Continuity & Risk Management4. Develop Internal StaffCustomers just like the sourcing and off shoring companies have a part to benefit. Customers benefit from better products and services that follow increased competition, a factor that also comes with reduction in prices.

Out Sourcing and off shoring companies also present several disadvantages for the companies involved. The major disadvantages are Loss of supervisory control of the process, loss of flexibility in responding to the transformations in business situation and the loss of internal and external client focus. These practices also pose the risk of possible loss of confidentiality by the concerned organizations. Out Sourcing and off shoring in many cases is met with lots of resistance from the natives, influenced by their inherent mistrust.

Works CitedSperling, Ed . "The Other Risks In Offshoring." Bloomberg Business Week. Bloomberg, n.d. Web. 15 Feb. 2014. .