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"Four key advantages of outsourcing" As ABI Inc. moves forward in its business growth and business life cycle outsourcing can improve the bottom line and efficiency. In general terms outsourcing gives a third party service provider

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Advantages of Outsourcing Learning Team B Shivanand R Koppalkar, Vickie Lander, Lakrisha Miller Gabriela Torres and Nan XU University of Phoenix MGT 578: Strategy Formulation and Implementation Audrey Ellison May 22, 2006 MEMO To: ABI Inc. From: UOP Consultants, Shivanand Koppalkar, Vickie Lander, Lakisha Miller, Gabriela Torres, and Nan Xu Re: "Four key advantages of outsourcing" As ABI Inc. moves forward in its business growth and business life cycle outsourcing can improve the bottom line and efficiency. In general terms outsourcing gives a third party service provider responsibility for certain processes within the business. The arrays of outsourcing providers are vast. This includes information technology, customer service, market research, business outsourcing, process outsourcing etc. Given the fact that ABI Inc. is a growing company that is not recession proof, we as Learning Team B suggest consideration of outsourcing. The most obvious benefit of outsourcing is its ability to allow the business to focus on the things that it does best as a business. Additional benefits realized from outsourcing are: Lower cost: Outsourcing allows for reduced overhead expenses and lower overall costs. Maximize resources: Sometimes a businesses growth outstrips resources availability. ...read more.


They integrate content only once and can share that technology integration across dozens to hundreds of clients. They offer "standard" customizations, which are then used by many clients and can be implemented in minutes, while customizations in companies running their own LMS's can take months. Some organizations also consider outsourcing because of tax incentives, which is another cost reduction alternative, "Tax incentives offered by many countries around the globe play an important role in attracting significant foreign investments" (Soliman, 2003, pp.735-744). Outsourcing can help open up new markets areas Outsourcing can be seen as a strategic maneuver to enter new markets. Outsourcing allows organizations to form alliances with other organizations. The resources and expertise that many of the offshores provide can allow organizations to pursue interest in other area. Outsourcing gives them access to resources that may not be directly available to them and makes moving into new markets more attainable. "Perhaps a less expected result but companies are using offshore as a launch pad into new product markets; Hewlett-Packard has move into digital cameras; Gateway has established leadership in the US plasma TV market; Dell is targeting markets in TV's and cell phones" (Offshore bonanza, 2006, 13-15). ...read more.


assets" (D Bruce 2006). In academic outsourcing, a good example is on-line distance learning, "The University of Phoenix was one of the early developers of on-line learning, and operates worldwide. On-line search engines currently outsource acquisition of data in almost every category of information and learning. Moreover, these sources have begun to vertically integrate facts and data, first into more useful information, and then further into knowledge, from which experience can sometimes even produce elements of wisdom. Teachers currently are the source of most integrated input in the classroom, but outsourced computer and video-based teaching modules will progressively usurp this function, with disruptive effects for the current academic bureaucracy (D Bruce 2006)". Conclusion In conclusion, UOP Consultants recommends outsourcing to have a successful outcome as the business continues to grow. Outsourcing is a trend that will continue to grow, especially the outsourcing of technology. Increasingly complex solutions, integration initiatives, budget and staff constraints, and the demand for diverse training resources are among the factors that will fuel the trend. As the question of whether or not to implement outsourcing as an option arises the positive aspects of outsourcing must be outlined. At the same time, option to outsource would reduce the risk factor to the organization and spur future growth. ...read more.

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