Outsourcing is a strategic management decision, as well as a cost saving strategy. According to Michael J. Mol. (2007) “Outsourcing has indeed become one of the key restructuring tools for companies, with a promise to improve the fate of fledgling firms or to increase further the performance of firms that are already leading their industries.” Page 2. From here I will start my article about outsourcing. I am against the creation of long-term relationships for outsourcing, the concept of creativity and innovation will not be there, as it is not a direct value for the outsourced good or service, and here I will explain why. According to John Child (2005) “Outsourcing allows organizations to select and utilize the best experience available” (Page 186), and he saw that this is one of the outsourcing advantages, were I see it in the top of the list, as I think this is guaranteeing the continuing on the organizations, and the failure to achieve having the best service and experience in the market will have a direct effect the organization publicity; That’s why am more with the short term engagements rather than the long term ones, benefits are a lot when Outsourcing considered as a short-term solution for a specific circumstances. In the below paragraph, am comparing between briefing Long-term advantages and disadvantages, and then will be coming with three different examples from the market. Long term
1. Focus on strategic and value add services, time will be given to the core business activities to drive better results. 2. Reduced Operational Costs, no need to hire people, a lot of operation work will be reduced, 3. Operational Control, This particular task and service needs to be delivered by this outsourced company, so it is identified. 4. Risk Management, the outsourced company is an expert in their business, they will be managing your risks in a better way. 5. Develop Internal Staff, outsourced tasks will bring experts to your...
Mol, Michael J. (2007) Outsourcing [electronic book]: design, process and performance. Cambridge: Cambridge University Press, 2007.
Child, J. (2005) Organization: contemporary principles and practice. Malden, MA: Blackwell Publishing.
Roberts, J. (2007) The modern firm: organizational design for performance and growth. Oxford: Oxford University Press.
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