The process of outsourcing is the concept of taking internal company functions and paying an outside firm to handle them.Outsourcing is done to save money, improve quality, or free company resources for other activities. Outsourcing was first done in the data-processing industry and has spread to areas, including telemessaging and call centers. Outsourcing is the wave of the future. For example, the USA often will outsource their businesses to third world nations that can do the work for a fraction of the price. By paying less, the businesses can maximize profits. Although outsourcing provides thousands of job opportunities for otherwise poor nations, it also exploits these workers and their jobs pay very little.
Some examples are:
Gap outsourcing their clothes manufacturing to India.
Mattel outsourcing their toy manufacturing to China.
Nike outsourcing their sporting goods manufacturing to Asia.
Companies may choose to outsource for some of the following reasons:
Higher Profit
Better Quality of goods
Staffing Issues
Above Created by: Jason, Robert H, Azfer, and Jackson.
Below Created by: Danielle
However, besides saving money, there are other reasons corporations may turn to outsourcing:
Improve Quality. Achieve better quality through contracting out the service with a new Service Level Agreement.
Knowledge. Access to more useful property and wider experience and knowledge.
Contract. Services will be provided to a legally binding contract with financial penalties and legal redress. This is not the case with internal services.
Operational Expertise. Access to a better practice that would be to difficult or time consuming to develop in-house.
Staffing Issues. Access to a larger talent pool and a sustainable source of skills.
Reduce Time to Market. Proximity to the market helps reduce travel time and costs
Risk Management. To lower risks, corporations may partner with an out-sourcer, or a company from a different country.
Time Zones. If a corporation needs to provide a service 24/7, having offices or factories in another time zone may help make this more desirable and manageable.
Location of Natural Resources. It may be more convenient for a corporation to manufacture products in close proximity to the resource to reduce travel time and costs.
Natalie Klassen- Kubatka-Rundle
Outsourcing is eliminating or moving a contract to another party, therefore eliminating a step so the outcome is easier, cheaper and more efficient. An example of this is a call center. Where people call to place an order or to ask for help, these may be located in India.
Outsourcing to the Philippines is an excellent strategy for entrepreneurs who are having a full-time web based business. Through the outsourcing exposed digital book in Amazon, outsourcing is a superb approach to accomplish more of these types of tasks. Lots more revealed about how outsourcing can benefit your home business, visit www.outsourcingexposed.com for more information.
In the picture above it shows people all over the world, getting different outsourcing sevices.
BELOW: By Chris Anderson Semester 2, Period 2
DEFINITION -(of a company or organization) to purchase (goods) or subcontract (services) from an outside supplier or source. Basically, buying goods for cheaper prices from other companies or countries to create efficiency and reduce production costs. A company may also outsource services (such as telemarketing) in order to cut wage costs. EXAMPLE- An example of outsourcing is when in 2002, Canadian transportation and finance company Bombardier outsourced 625 jobs to a larger California based company, Computer Science Corp. In turn the company gained new services and features (such as network management services) it did not have before. As Bombardier President Peirre Lortie said, “CSC will work with us to deliver an IT transformation programme that will deliver a high quality, cost effective and scalable IT platform.”
Some examples are:
Companies may choose to outsource for some of the following reasons:
Above Created by: Jason, Robert H, Azfer, and Jackson.
Below Created by: Danielle
However, besides saving money, there are other reasons corporations may turn to outsourcing:
Natalie Klassen- Kubatka-Rundle
Outsourcing is eliminating or moving a contract to another party, therefore eliminating a step so the outcome is easier, cheaper and more efficient. An example of this is a call center. Where people call to place an order or to ask for help, these may be located in India.
Outsourcing to the Philippines is an excellent strategy for entrepreneurs who are having a full-time web based business. Through the outsourcing exposed digital book in Amazon, outsourcing is a superb approach to accomplish more of these types of tasks. Lots more revealed about how outsourcing can benefit your home business, visit www.outsourcingexposed.com for more information.
In the picture above it shows people all over the world, getting different outsourcing sevices.
BELOW: By Chris Anderson Semester 2, Period 2
DEFINITION -(of a company or organization) to purchase (goods) or subcontract (services) from an outside supplier or source. Basically, buying goods for cheaper prices from other companies or countries to create efficiency and reduce production costs. A company may also outsource services (such as telemarketing) in order to cut wage costs.
EXAMPLE- An example of outsourcing is when in 2002, Canadian transportation and finance company Bombardier outsourced 625 jobs to a larger California based company, Computer Science Corp. In turn the company gained new services and features (such as network management services) it did not have before. As Bombardier President Peirre Lortie said, “CSC will work with us to deliver an IT transformation programme that will deliver a high quality, cost effective and scalable IT platform.”
SOURCES- http://dictionary.reference.com/browse/outsourcinghttp://www.cbc.ca/money/story/2002/11/21/bombardier_021121.html http://sajablogs.typepad.com/photos/uncategorized/2007/11/14/11929_thumb.gif