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GlobShops Management of Outsourcing to Date - Case Study Example

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This research is being carried out to evaluate and present the concept of outsourcing. Outsourcing is a process of contracting the business process of an organization to a third party concern in order to increase its operating income, revenue and profitability…
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Download file to see previous pages The paper tells that in this age, globalization and introduction of internet facilities enhanced the pace of outsourcing. In order to amplify the productivity and profitability of an organization, the concept of outsourcing of information technology are recognized as one of the most important business strategies so as to improve the position and ranking of the organizations in the market among many other rival players. The prime aim behind such type of outsourcing or offshore mergers is to reduce the amount of cost that may amplify the total revenue and operating income of the organization. Keeping this aspect in mind, the global travel retail organization, Globshop also decided to outsource, the activities of information technology. Such a tactical and strategic decision is taken by the CEO of the organization, Mr. Roger Deen in order to mitigate the challenges aroused due to terrorist attract in the year 2001 in 11th September. In addition to this, Mr. Deen implemented such type of decisions, in order to amplify the competitive advantage and reliability of the business by outsourcing, informational technology activities to Indian firms at a quite cheap cost and easy shipping facilities. The prime aim of this paper is to evaluate the perspective of management of Globshop in regard to the process of outsourcing varied services of information technology. Along with this, it also highlights, the benefits and risks associated with such type of corporate strategies, rather than cost savings. Along with this, the pros and cons of the concept of outsourcing are also described with the help of various theories so as to analyze its effectiveness as a corporate strategy.
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