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Outsourcing to Vietnam : Operations management assignment - Essay Example

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Name Institution Instructor Course Date Outsourcing to Vietnam: Operations management assignment Introduction The field of operations management is a management area that concerns itself with designing and overseeing production processes as well as operations involved in production of goods and services (Almond, 2011:5)…
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Download file to see previous pages That is, it oversees and controls conversion of materials, energy, and labour into either goods or services. The Socialist Republic of Vietnam is number thirteen in terms of popularity in the world and eighth in Asia. As of 2011, it had over 90.5 million inhabitants. According to The Business Watch, this country has huge potential of operations management (Lewis and Slack, 2003:45). With that respect, this essay will seek to highlight the benefits of outsourcing to Vietnam by considering a number of factors. Costs Outsourcing staff in the operations management sector to a country like Vietnam calls for a number of considerable factors. Shifting to different country is very tricky and factoring out things like management and transaction costs is important (Almond, 2011:9). Moving to Vietnam, as an operations manager is one of the most exciting working experience one can ever have (Anil and Suresh, 2009:39). This is because, in this country, costs of things like transport, fixed, energy, and other costs involved in manufacturing are considerable and pocket friendly (Ray, Dragicevich, and Louis, 2007:36). Research based on operations management in this nation revealed that the costs involved in major aspects of running any business that requires operations management are considerable and thus effective for setting up firms here (Mahadevan, 2010:77). Given these advantageous factors, it is favourable for business people with potential to grab this opportunity and set up businesses or seek employment in this country. Labour characteristics With reference to operations management, every firm expects the manager responsible for this department to oversee production processes. As such, it is congruent for operation managers planning to outsource jobs in other countries to do a thorough research that can avail the relevant information regarding the sector (Klassen and Menno, 2006:54). One of the most important factors one should consider is the characteristics of that country’s labour market. In every country, there are variable levels of labour quality. Therefore, assessing the quality of labour is essential in order to determine the kind of people you will be dealing with in that foreign nation (Lewis and Slack, 2003:73). For instance, documented sets forth that the level of labour quality in Vietnam is high. This makes it a top priority to people hoping to work in this country as operations managers since employees are conversant with what they do. Availability of labour is another factor that is worth considering while outsourcing in a foreign country. Since Vietnam is an Asian country where Confucianism and its teachings emphasize on hard work, it is relevant and apparent that availability of labour is not a major issue (Anil and Suresh, 2009:51). People are hardworking, an aspect that makes this country to have part of the cognitive labour force availability in the world. Additionally, the rate of unemployment is low given the fact that means of creating forms of employment are in plenty in this country (Curry, 2009:25). Working in Vietnam as an operations manager is simple and advent as employees depend on aspects of culture that encourages values like dedication, loyalty, and hard work. Citizens of this country only expect rewards in form of hard work and commitment as opposed to notions of western countries where rewards may come in form of favours (Greasily, 2009:49). ...Download file to see next pagesRead More
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