Outsourcing and Company
Outsourcing
Contents What is Outsourcing? 3 Advantages of Outsourcing 3 Disadvantages of Outsourcing 3 Types of Outsourcing 4 Outsourcing for e-Business 5 Real Companies 6 Conclusion 6 Bibliography / References 7
What is Outsourcing?
Outsourcing, sometimes called offshoring, is the act of a company contracting another company to provide or generate services that could be done by the employees of the company. The main reason to do this is because most of the time is cheaper if another company provide those services than the company doing it by itself. There is still a chance that there is a lack of experience in some parts of the company or business, and because of this, outsourcing is required. Some of the services that are nowadays outsourced are frequently call centre services, payroll services and e-mail services among others.
Advantages of Outsourcing
The first advantage and the most important is cheaper. When a service is outsourced it cost less than implementing that service on the company, due to different factors such as hiring and training personnel, buying new and adequate equipment among other, because the company that you are going to outsourced services from is supposed to have all of these things already in the company.
Another Advantage of outsourcing is a strategic optimization; this allows your company to focus on important things for the main goal of the company rather than having to focus on operations that may disturb the main goal.
One more advantage is the availability of companies that outsource services in the market, allowing you to be able to choose from a different range of companies, depending of the services they provide, the money that they cost, which one is the leader on the field.
There are services that can be outsourced to different countries, saving a lot of money in taxes and wages.
Disadvantages of Outsourcing
The first disadvantage is the loss of expertise, after a while outsourcing
Contents What is Outsourcing? 3 Advantages of Outsourcing 3 Disadvantages of Outsourcing 3 Types of Outsourcing 4 Outsourcing for e-Business 5 Real Companies 6 Conclusion 6 Bibliography / References 7
What is Outsourcing?
Outsourcing, sometimes called offshoring, is the act of a company contracting another company to provide or generate services that could be done by the employees of the company. The main reason to do this is because most of the time is cheaper if another company provide those services than the company doing it by itself. There is still a chance that there is a lack of experience in some parts of the company or business, and because of this, outsourcing is required. Some of the services that are nowadays outsourced are frequently call centre services, payroll services and e-mail services among others.
Advantages of Outsourcing
The first advantage and the most important is cheaper. When a service is outsourced it cost less than implementing that service on the company, due to different factors such as hiring and training personnel, buying new and adequate equipment among other, because the company that you are going to outsourced services from is supposed to have all of these things already in the company.
Another Advantage of outsourcing is a strategic optimization; this allows your company to focus on important things for the main goal of the company rather than having to focus on operations that may disturb the main goal.
One more advantage is the availability of companies that outsource services in the market, allowing you to be able to choose from a different range of companies, depending of the services they provide, the money that they cost, which one is the leader on the field.
There are services that can be outsourced to different countries, saving a lot of money in taxes and wages.
Disadvantages of Outsourcing
The first disadvantage is the loss of expertise, after a while outsourcing
References: Boddy, D (2011). Management. Harlow: Prentice Hall. 107. 2 Chaffey, D. (2002). E-business and e-commerce management. New York: Financial Times/Prentice Hall. 290-300. Francois, C. (2003). What Are the Different Types of Outsourcing Services?. Available: http://www.wisegeek.com/what-are-the-different-types-of-outsourcing-services.htm. Last accessed 19th Nov 2012. Fujitsu Australia Limited. (2010). Fujitsu Drives Toyota’s IT Technology Direction. Available: http://www.fujitsu.com/au/news/pr/archives/2010/20100920-01.html. Last accessed 17th Dec 2012. Manning, T., 2012. What local government can learn from Toyota 's business model. [ 1 ]. Carol Francois. (2003). What Are the Different Types of Outsourcing Services?. Available: http://www.wisegeek.com/what-are-the-different-types-of-outsourcing-services.htm. Last accessed 19th Nov 2012. [ 2 ]. Dave Chaffey (2002). E-business and e-commerce management. New York: Financial Times/Prentice Hall. 290-300.