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Evidence to support that the benefits of outsourcing and/or off-shore outsourcing outweigh the disadvantages - Essay Example

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Management Essay Introduction Outsourcing is a process through which national and international business firms transfer or outsource and their low end or non-critical business processes to some other firms. It offers strategic move to the business firms with an opportunity to gain strategic or competitive advantage in the long term…
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Evidence to support that the benefits of outsourcing and/or off-shore outsourcing outweigh the disadvantages
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"Evidence to support that the benefits of outsourcing and/or off-shore outsourcing outweigh the disadvantages"

Download file to see previous pages Evidence to support that the benefits of outsourcing and/or off-shore outsourcing outweigh the disadvantages The concept of outsourcing has gained immense popularity and recognition in the field of information technology, legal, logistics, manufacturing, technical and customer support. There are various reasons or advantages responsible for motivating or encouraging firms or companies to outsource or get their work done through other players or partners. It is well known fact that every concept or technology contains some drawbacks and limitations acting as a hindrance in the path of successful accomplishment of the respective concept or technology (Tate, Ellram and Lisa 2012). The case of outsourcing is not an exception. It also contains various limitations or disadvantages creating negative impact on the benefits and effectiveness of outsourcing. However, technological advancement and enhanced security control features has provided new dimension and height to the concept of outsourcing. The outsourcing becomes more effective and filtered with the emergence of enhanced security control features and technological advancements. ...
The growth of large number of administrative and financial functions demands extra time and effort to manage those functions. It has been seen that company needs to allocate huge amount and money to manage these functions which in turn increases cost burden for companies. The cost burden creates negative impact on the operating and financial profit margin of the company. This extra cost burden put the companies in a vulnerable situation in a long time (Doh 2005). Moreover, it also led the companies to deviate from the core operations and focus on such back-ended and supporting functions. For instance, IBM (International business machines) continued to enjoy dominance in the field of mainframe computing for many years. The company continues to enjoy leadership in the manufacturing of personal computing device. The personal computing manufacturing industry entails huge capital expenditure and initial costs to initiate the manufacturing process. The huge capital expenditure deters the other players from entering in this industry. However, entry barriers in terms of huge capital cost and initial expenditure falls or reduces with the passage of time. The reduction of entry barriers led the other players to enter in the personal computing manufacturing industry (Clark, Zmud and McCray 1995). This scenario paves the path of entry of many other players like Dell, Toshiba, Hewlett-Packard, and many others in the personal computing manufacturing industry. IBM has started to face immense threat and competition from these players. In response to this, IBM has started shifting their business focus towards ‘business transformation services’ ...Download file to see next pagesRead More
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Advantages and disadvantages of outsourcing
Outsourcing has become a major business in today’s world.Most of the big companies outsource their work which is not their core operation. To understand outsourcing one has to know what does outsourcing means. Outsourcing can be defined as contracting out a work which is not the core function of the business.
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Outsourcing: reasons, advantages and disadvantages
The realm of strategic management aids in specifying an organisation’s mission, vision as well as objectives and in creating various policies and plans that are often in terms of programs and projects. These programs and projects are designed to meet objectives and need a commitment of resources on the part of the management.
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This paper begins by defining outsourcing and then describing the different forms of outsourcing. Next it outlines why organizations opt to outsource and how they select what to or not to outsource. The paper then dwells on the advantages and disadvantages of outsourcing from two perspectives: from the point of view of a company and from the point of view of the country.
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Benefits of outsourcing outweigh disadvantages
In the corporate world spread in Asia, North America and Europe, more than 82% of the organizations both large and medium sized outsource all or at least a part of their activity to accomplish the task in an effective and efficient manner. Furthermore, there has been an increasing trend towards outsourcing the work to outside organizations or to other countries which has earlier been done in-house.
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Is there evidence to support that the benefits of outsourcing and/or off-shore outsourcing outweigh the disadvantages
Outsourcing and offshore outsourcing have increased to great extents but it has been also found out that there are certain risks and negative externalities attached with outsourcing. The paper through discussion of the benefits and disadvantages will exhibit evidences to show whether the advantages of outsourcing outweigh its disadvantages.
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It is a task or an operation that can be done by employees of the internal organization but are instead contracted to a service provider for a significant period of time. The service provider can be offsite or onsite but the most common method of outsourcing is off shoring of activities to different developing countries like India or China.
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Outsourcing: risks and benefits
The main benefit is saving the cost of setup in another country.The firms which takes the right of the original company's brand name pays for the setup costs such as setting up of a manufacturing facility, advertisement costs and all other expenses associated with the setup of the business
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Globalization, Outsourcing, Off-shoring, and Offshore Outsourcing Impact on Culture
First, we review historical changes from outsourcing to offshore outsourcing. Offshore services have grown rapidly in recent years. (Davis, G.; Ein-Dor, P.; King, W.; and Torkzadeh, R. 2006). The advent of the Internet in large scale operations gave industry the opportunity for more cost effective labor since the 1990s.
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There have been many reasons for the companies to outsource there is business and some of them are trying to cut costs of IS services, the demand for good quality systems and the inability of the company to establish complex computer systems. The major hurdle in
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However each has its own distinct characteristic features. Outsource process incorporates handing over of the various tasks and activities of the organization to a new agreed upon party
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