Outsourcing: Staying Competitive in the Global Market
Abstract
As more companies expand their business globally, they are seeing more opportunities and an increased set of threats to the market. Threats like war, political revolutions, new currencies, and natural disasters can affect growth and political stability throughout the world, so in order to successfully compete in the international market more companies are faced with the decision of relocating part of their operation offshore. This paper will address what key elements companies in this situation need to address, such as, quality of customer service provided, security of confidential information, and the possibilities of cost savings, in order to be sure that outsourcing is the best solution for their company.
Outsourcing to Stay Competitive
For companies to stay competitive in today 's global market, many are facing the decision to outsource sectors of their company. By taking a part of their business offshore, a company can lower their bottom line and enter markets they were not able to reach before. However, many questions need to be answered before a company decides to move an entire sector of their business offshore. They first need to look at how security will be handled. Will they be able to trust an overseas subcontractor with valuable information about both their company and their customers? What measures need to be in place to ensure that this information is handled properly? A business considering outsourcing also needs to think about how this will affect the level of customer service their customers expect. Will their customers be able to understand and feel comfortable talking with a non-native English-speaking representative? Also, will that representative give the same level of customer service as someone in your home office? Finally, is outsourcing a company 's best way of cutting costs? Will it actually lower their overall costs or will it create more by moving a part of their business overseas? Organizations need to explore the
As more companies expand their business globally, they are seeing more opportunities and an increased set of threats to the market. Threats like war, political revolutions, new currencies, and natural disasters can affect growth and political stability throughout the world, so in order to successfully compete in the international market more companies are faced with the decision of relocating part of their operation offshore. This paper will address what key elements companies in this situation need to address, such as, quality of customer service provided, security of confidential information, and the possibilities of cost savings, in order to be sure that outsourcing is the best solution for their company.
Outsourcing to Stay Competitive
For companies to stay competitive in today 's global market, many are facing the decision to outsource sectors of their company. By taking a part of their business offshore, a company can lower their bottom line and enter markets they were not able to reach before. However, many questions need to be answered before a company decides to move an entire sector of their business offshore. They first need to look at how security will be handled. Will they be able to trust an overseas subcontractor with valuable information about both their company and their customers? What measures need to be in place to ensure that this information is handled properly? A business considering outsourcing also needs to think about how this will affect the level of customer service their customers expect. Will their customers be able to understand and feel comfortable talking with a non-native English-speaking representative? Also, will that representative give the same level of customer service as someone in your home office? Finally, is outsourcing a company 's best way of cutting costs? Will it actually lower their overall costs or will it create more by moving a part of their business overseas? Organizations need to explore the
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