OUTSOURCING CONCEPT: THE SURVIVING STRATEGY FOR MODERN
BRIGHT W. AMADI
The concept of outsourcing is traced back to the concept of Supply Chain Management that is centred on cost minimization and optimization of operational core competent.
It is not to be argued that business enterprise operates in varying environment of activities that is supported to achieving customer satisfaction and increase shareholders’ investment or return on investment. Outsourcing concept quickly observed to be the concentration to CORE COMPENTENCE of the enterprise. And therefore, other supporting activities where they do not have core competence in are outsourced to other organizations with the view of rendering customer centric business in a minimal cost. In other words, continuum of activities considered maverick are undertaken by outside enterprise that do not share the same vision, mission, and operational policy of the outsourcing enterprise with the view of optimizing their specialty.
More so, outsourcing is the product of comparative cost advantage at the enterprise level. It’s idea is to outline and concentrate Efforts, Strengths, Machines, Man, Money and Time on the activity(ies) where they are considered professional competent and give out other supporting activities to outsider professionals leveraging on their unequal expertise to satisfy their serving customers and increase return on investment. Therefore, modern organizations do not perform all their activities alone. But have learnt how to use the professional services of others to better their business in a controlled system.
Fawcett et.al (2007) enjoined managers to find the better way to do business if it is possible. In logistics, if you go an hour without a screw-up, you have had a great day (Gus Pagonis in Fawcett at.al 2007). Procurement pundits and Operation Managers should always think out the better way of managing their business operation to fruition.
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