ResearchPaper 
Option 2
Outsourcing and Offshoring
Franz Ferdinand
Microeconomics
11/17/2014
Effective Outsourcing and Offshoring
Outsourcing takes place on areas of logistics, IT services, and business process outsourcing. On the other hand, offshoring covers several business practices, products, and nations on a wide area. According to Contractor (2010), outsourcing can be described as the hiring of an outside firm to undertake a task, which would otherwise be carried out by a company or organization.
The effective use of outsourcing can lead to lowered costs or an efficient workforce. On the other end, Houseman (2007) defines offshoring as the tendency among numerous firms from all over the world (particularly the U.S., Western European, and Japanese firms) to send both manufacturing and knowledge-based work to third companies in other countries. This essay discusses the benefits of efficient outsourcing and offshoring from companies.
Effective outsourcing normally takes several years in duration. Companies, which hire outsourced workers usually, do so because they focusing on their basic strengths while distributing more routine tasks for others to perform outside the organization (Spring, Araujo & Mason, 2013). In order for efficient outsourcing, a company has to plan before selecting an outsourcing partner.
Nevertheless, by a company outsourcing to a third party, its business can pay attention to what it does best in order to improve its position in the marketplace (Oshri, Kotlarsky&Willcocks, 2011). Common outsourced services for example are operations in the human resource department, telephone call centers, computer services and the design of products or components. Currently, companies do not only outsource from other companies to cutcosts,
but also to have access to skilled labor, minimizing overhead costs, increasing efficiency, flexible staffing and generating more profit.
Outsourcing is beneficial to companies as it assists them gain access
Outsourcing and Offshoring
Franz Ferdinand
Microeconomics
11/17/2014
Effective Outsourcing and Offshoring
Outsourcing takes place on areas of logistics, IT services, and business process outsourcing. On the other hand, offshoring covers several business practices, products, and nations on a wide area. According to Contractor (2010), outsourcing can be described as the hiring of an outside firm to undertake a task, which would otherwise be carried out by a company or organization.
The effective use of outsourcing can lead to lowered costs or an efficient workforce. On the other end, Houseman (2007) defines offshoring as the tendency among numerous firms from all over the world (particularly the U.S., Western European, and Japanese firms) to send both manufacturing and knowledge-based work to third companies in other countries. This essay discusses the benefits of efficient outsourcing and offshoring from companies.
Effective outsourcing normally takes several years in duration. Companies, which hire outsourced workers usually, do so because they focusing on their basic strengths while distributing more routine tasks for others to perform outside the organization (Spring, Araujo & Mason, 2013). In order for efficient outsourcing, a company has to plan before selecting an outsourcing partner.
Nevertheless, by a company outsourcing to a third party, its business can pay attention to what it does best in order to improve its position in the marketplace (Oshri, Kotlarsky&Willcocks, 2011). Common outsourced services for example are operations in the human resource department, telephone call centers, computer services and the design of products or components. Currently, companies do not only outsource from other companies to cutcosts,
but also to have access to skilled labor, minimizing overhead costs, increasing efficiency, flexible staffing and generating more profit.
Outsourcing is beneficial to companies as it assists them gain access
References: Contractor, F. J., Kumar, S. K., & Pedersen, T. (2010). Reconceptualizing the firm in a world of outsourcing and offshoring: The organizational and geographical relocation of high‐value company functions.Journal of Management Studies, 47(8), 1417-1433. Houseman, S. (2007). Outsourcing, offshoring and productivity measurement in United States manufacturing.International Labour Review, 146(1‐2), 61-80. Oshri, I., Kotlarsky, J., &Willcocks, L. P. (2011).The handbook of global outsourcing and offshoring.UK: Palgrave Macmillan. Spring, M., Araujo, L., & Mason, K. (2013). Offshoring and outsourcing of administrative and technical services: a modularity perspective. Managing Services: Challenges and Innovation, 154.