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For Human Resource Management Topic (Outsourcing: When Does It Make Cents) - Research Paper Example

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In pursuit of Competitive Advantage (Porter 1980) production units gradually moved away from the local areas and were relocated to countries where labour was much cheaper and abundantly available. This was the first step towards outsourcing, though it did not come to be…
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Research paper for Human Resource Management paper Topic (Outsourcing: When Does It Make Cents)
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For Human Resource Management Topic (Outsourcing: When Does It Make Cents)

Download file to see previous pages... Thus, having overseas production units and markets became the norm for major business organizations.
This eventually, led to the phenomenon of global competition. The competition was so fierce that businesses that failed to keep up with the changing: trends, technologies and competencies — swiftly faded away into oblivion. Thus, to cope with cut-throat competition organizations developed expertise in every area of business, be it: production, marketing, human resources, finance, etc. to name just a few. To gain and maintain the competitive edge over competitors, businesses continuously re-assed their processes, technologies and the availability of lower-priced resources.
Subsequently, the supply and value chains came into existence as production of goods/ services became increasingly specialised fields, where the partners provided expertise and quality at lower-cost, adding immensely to the profits of the company (Feneestra 1998). As a result of the significant difference in the bottom-line, companies grew more eager to make the most of expert yet low-cost goods/ services provided by outside vendors. Hence, outsourcing to the best resources around the globe became the accepted strategy to help companies: economise, focus on core competence and improve returns on investment.
The advent of Information Technology (IT) had a profound impact on the way business was done in the global scenario. IT made it possible to have access to multiple overseas locations in real time; after the promulgation of world-wide production, world-wide networks emerged as an innovative extension of the firm (Borrus et al 2000).
The ability to communicate instantly finally established ‘outsourcing’ firmly in the global B2B (business to business) sector. Outsourcing became the mantra business organizations lived by. There was no question that every organization would be outsourcing; the only decisions to be made were: ‘what,’ ‘where’ and ...Download file to see next pagesRead More
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