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Outsourcing: A Covert Curse?

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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.

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