Outsourcing to other countries

Outsourcing to other countries
15/08/2017 Comments Off on Outsourcing to other countries Other Academic Papers admin

“Outsourcing” means sharing a portion of your business with a specialist “external service provider” because the organization does not possess the capacity to handle all aspects of a business process with its own resources.  Besides some processes might not be permanent and the company does not want to hire professionals to perform the required tasks. When the assignment is outsourced to the selected service provider, then that organization has the responsibility of carrying out the tasks and maintaining the company’s resources and assets.  However, before outsourcing any section or module of a business to a third-party vendor, it is necessary to understand the pros and cons of outsourcing.

Although outsourcing does provide some very positive advantages to the organization, it could also create some difficulties if not outsourced to the service provider(s) that will give competent and efficient services which will enhance the value of the business. Outsourcing has many positive characteristics and these positive aspects outweigh its negative effects. The many advantages of outsourcing are: Companies outsource their low and high end tasks to achieve growth in their organizations which enables them to easily meet the increased demand for products and services. Companies initially outsource to locations that provide services only.

Eventually, offshore sourcing becomes increasingly viable as the company achieve greater growth due to outsourcing to countries that have skilled manpower at lower rates. Companies have unlimited options for companies that provide a wide range of services. Besides saving a great deal of money because of the less expensive payment rate, outsourcing helps in minimization of various business risks. Outsourcing maximizes the competitive spirit and helps the organization to strengthen their core competencies and concentrate more on strategic management. By outsourcing its services or manufacturing to other locations, more and more companies are achieving their business objectives by staying ahead of the competition and strengthening their positions in the global market.

Outsourcing produces much better results because the countries who are the recipients of outsourcing hire the best talent for services and manufacturing even for low-end tasks. Outsourcing also ensures proper resource utilization because it envisages utilization of skilled manpower, advanced technology and exceptional infrastructure.  Business risks are proportionally shared with vendors and the parent company does not need to carry the responsibility of all business risks by itself. Outsourcing also helps the organization to become more flexible to adapt to positive changes in the business environment.

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