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Outsourcing - Research Paper Example

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Outsourcing has turned out to be a key business aspect, providing many firms with the chance of hiring an outside firm, to help in the completion of their production processes, and a well reduced cost but high productivity rate. The decision to undertake outsourcing is a sign of future increase in profits…
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Download file to see previous pages Outsourcing has turned out to be a key business aspect, providing many firms with the chance of hiring an outside firm, to help in the completion of their production processes, and a well reduced cost but high productivity rate. The decision to undertake outsourcing is a sign of future increase in profits.A number of factors have become considered before a firm can decide whether outsourcing is the right path for the firm to take. To many organizations the objective of outsourcing is to improve the company’s financial competitiveness, majorly through reduction of costs. The author argues that, companies that specialize in various support functions work cheaper since they benefit from various scale of economies, use the latest technology and expert knowledge. A number of organizations make the decisions outsource mainly since they want to try and focus on their key competencies, and check minimal value in creating in house processes out of these main competencies. Human resource outsourcing helps in reducing the overall work load of the present Human Resource staff. According to him, this gives the firm an opportunity to focus on its strategic decision making process, and development of the major competencies. Outsourcing HR processes can provide managers with an opportunity to pay close attention to their main businesses, instead of spending their valuable time on different HR processes, which are constantly turning out to be complex and more advanced. HRO reduces attrition; losing an indispensable employee can cost the management tens if not hundreds of thousands. In The United States alone, the annual cost of an employer turnover is close to $5 ...Download file to see next pagesRead More
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