• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Outsourcing: A Covert Curse?

Extracts from this document...

Introduction

Outsourcing: A Covert Curse? The world has come a long way with respect to development in business world. The economy has changed its face from a simple barter system taking place only in the surroundings of human habitat to current day complex model of global economy that deals with several nations working together and trying to compete to be crowned as victorious. The ever increasing human quest for succeeding and to be best has made changes to the world beyond human imagination. New ways of accomplishing a task emerges daily and if you do not keep up with it, it might just turn out that the way you were spreading jam on your toast might too out dated. Thus, in the quest to achieve excellence humans started develop new business methods. Things started progressing from simple functioning business to the development of assembly line in production to the industrial revolution evolving to internal partnerships slowly leading to global partnerships. Since the boom in global economy and trying to get ahead companies use different methods to succeed. The key goal to succeed is to maximize your revenues and the key to do so is to minimize your costs. ...read more.

Middle

Such knowledge could come in handy if in future you decide to bring the process in-house. * Our First Failure Should be Our Last Attempt: As it is well said, If at first you don't succeed try again. Many clients take the first failure as a sign to stop instead of improving the process. Experience with the vendor might correct a lot of mistakes. As we discussed outsourcing could be a boon to some organizations while it could be as nightmare for others. In today's world the technology has grown to an extent that one cannot perform efficiently with the lack of it. At Liberty Mutual Group, just like any other insurance company there are many systems and software that are being used to perform daily operations. Each computer at Liberty Mutual has a standardized image that has all the basic tools need by any user. For each additional task that needs to be performed by the individual they need to install the software that is "advertised" to them. Each desktop is a locked down device which has no ability to install any programs unless the software is QA certified. This process helps to limit any virus attacks or the risk of getting hacked. ...read more.

Conclusion

Employees are one of the few who are directly affected by it. Many times when outsourcing services organizations forget to factor in relationships that are destroyed. Also sometimes organizations forget to factor regional obstacles. When considering the costs mainly labor or asset costs are factored in, however sometimes there are more regional costs needed to run business. Time and money needs to be spent adequately in order to train and educate the vendor about the service they will be offering. Many problems could arise if your vendor cannot communicate effectively to your clients. The difference of cultures also plays an important role in unsuccessful outsourcing. Other risks, such as protecting your assets against local nuisance, your own employees and the service that you are involved in etc. You could spend a lot more if you do not have a plan of action. So in conclusion outsourcing could help your organization or hurt it, it all depends on how you are utilizing it. You should not be doing it just because everyone else is doing it and they are succeeding at it. There are risks that need to be assessed and there are precautionary steps that need to be taken. If not followed correctly you could end up on the side of the fence you did not expect to be on first place. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Management Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Management Studies essays

  1. IT implementation failures

    As noted above, people play a great role in causing the failure of healthcare information systems (Trevor). Whether it is information system managers or clinicians and eve patients, they all contribute to system failures. One of the biggest areas where healthcare institutions go wrong and hence cause failure of their

  2. BUSINESS PLAN FOR ESTABLISHMENT OF

    Available from: http://www.oracle.com/applications/crm/siebel/resources/implementation-success-white-paper.pdf [Accessed 22th July 2009] 31. Palepu, K., Healy, P. and Bernard, V. (2004) Business Analysis & Valuation Using Financial Statements, 3rd edition, Thompon, South-Western 32. Porter, M. (2008). The Five Competitive Forces That Shape Strategy. Harvard Business Review, 86 (1), 78-93. 33. Porter, M. (1985)

  1. Outsourcing Report. Objectives are: To ...

    Most of the works are lost due to bankruptcies, internal restructuring and ownership changes every year than due to offshoring and outsourcing. CHAPTER-2 2.1. Who Benefits from Outsourcing? According to Anderson (1997) outsourcing has now become a vital and key strategy for growth and survival for many firms around the globe especially in the IT sector.

  2. Problem Solution Global Communciations

    This tendency of decision makers to make a less rational decision after investing time and resources even if the decision is the wrong one. Gomez-Majia & Balkin state that, "The more costly the resources invested, the more likely the decision maker will be wedded to the chosen alternative, even if

  1. CRM in 3PL Environment

    Any organization strategy that doesn't serve to create, maintain, or expand relationships with the target customers doesn't serve the organization. Finally, the author mentioned the words " creating, maintaining and expanding." CRM is about the entire customer cycle. When implementing CRM strategy, one will capture and analyze data about his organization's targeted customers and their targeted buying habits.

  2. The report aims to highlight the impact outsourcing has had on General Electric Company. ...

    It was one of the largest foreign investors in Japan, had an enormous presence in Europe, employed more than 20,000 in India, and was widely present in Latin America (Vietor and Veytsman, 2007). 1.2 Aims The purpose of this report is to evaluate the impact that outsourcing has had on GE.

  1. The relationship between outsourcing and technology, outsourcing and the global crisis.

    Shifting in-house production to external producers increases the likelihood that US companies will progressively lose their knowledge and skills of being experts in their areas. Outsourcing also means that information sharing to suppliers becomes inevitable; making the concern of technology leakage becomes a hindrance to outsourcing decision of many enterprises with high technology level (Mariagiovanna Baccara, 2004).

  2. Nike's use of outsourcing.

    ________________ Presentation of Nike Nike, Inc. is the biggest manufacturer worldwide of both athletic footwear and apparel in terms of sales. It specializes in the production and sale of athletic footwear, apparel and equ ipme n t . F o r t he f i s cal y ear 2009

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work