OutsourcingEssay title: OutsourcingThere are many positive reasons why a company would decide to outsource certain functions. Some companies choose to outsource for the convenience and others for the cost benefit. A company must also take into to consideration the negatives and decide what is best for the company before it decides to outsource.
Globalization is one of the main reasons that lead a company to outsource. When talking about globalization, other countries can perform certain tasks cheaper than if they were performed in the US. “Outsourcing can be economically healthy and acceptable. This practice has led to job growth and profits for US Organizations that provide services such as, legal work, Information Technology, banking, consulting and customer service. In order to be effective, managers should understand how globalization impacts their domestic operations and influences the effective management of their human resources around the globe”(Ivancevich, pg113). When a company decides to outsource globally there is much responsibility that is involved with that task. It is important that the company performs its research as to how to successfully outsource to that particular country. One challenge may be customs and work ethic. A company must fully understand the new country.
”Moral Of The Story
“The first place in which a company’s leaders must be prepared is by educating their staff at their company headquarters. Without a well-established network of knowledgeable employees, there is no chance at all in which a company can be successful. If a company cannot recruit, retain, retain its top talent, it will likely fail. So how can management know what talent to retain at a very low cost?” –Das Löfven, former President and CEO of a major pharmaceutical company„Outsourcing is very effective at making a company profitable and to keep it in business. “When a company has a well-established network of employees, it has the time and the resources to meet its mission of increasing productivity and saving money. With the right investment, a company can become a truly efficient, sustainable business with its global management team. A top management team can also reduce the risk of mis-understanding and under-investing. Moreover, it was the leadership of the company, through its current leadership, that brought the importance of a business to America so that it could achieve economic growth. A company’s leaders must be prepared to make a major investment to achieve financial stability, improve its stock performance relative to the year before it leaves office, and maintain its financial condition for at least 30 years.” –Thomas H. Schur et al., A Review of Corporate Governance & Innovation, 2009 –How Much Did This Productivity Fiasco Cost The Nation‟Outsourcing made the company better at managing costs by expanding workforce and increasing personnel ranks. By not just recruiting more top managers but also having more experience in the field, the company had a real chance of improving productivity and improving results at the customer-facing and higher-risk areas while also reducing or eliminating overpayments. This is also why the company managed to reduce the number of employees employed by 75% from 3,000 to 2,000 in 2006, compared to the 30% which went in the previous year under the leadership of the current CEO. Another important factor was to invest in the ability of the top managers to carry on the job without a significant loss in productivity. In the same year, IBM started to build research and development to support the introduction of higher-performance networking technology in the field ‟Outsourcing was successful for the first time in improving productivity by 40.8%. And the company increased its share of the sales industry through the creation of new product lines that were integrated seamlessly with software and hardware. IBM also added significant support to the development of its own research and development to explore new market opportunities. A company’s productivity could help the company to develop products and increase revenue, and it will certainly have the advantages in reducing operating costs. In terms of technology, the latest generation of IBM networking hardware is the IBM 10-Series, which is designed to extend the life of IBM’s products in both residential and business markets. The 10-Series has been designed to accommodate large commercial and enterprise applications, like datacenters, data centers and research and development centers. This is especially needed as many of the new IBM technologies, including the IBM 10-Series networking stack, will be available at cost rates approaching $50 billion for 2014, according to the company’s press release. Another significant technology change that could cause the company to make an impact has been IBM’s use of “supercomputers” to make a number of improvements to the computer operating system. In order to ensure that the 10-Series remains as strong as ever, IBM has launched a program called “Supercomputers” to help employees find and acquire new computing skills. The program offers employees more choice as to which “supercomputer” they want to hire. When hiring on Supercomputers, employees are encouraged to visit the program page as well as the “The Ultimate Training Guide” that
Another reason to outsource is for a company to not only save money, but to have the convenience of not housing certain departments or functions inside their company. “Outsourcing, sometimes called “staff sourcing” involves paying a fee to a leasing company or professional employer organization (PEO) that handles payroll, employee benefits, and routine Human Resource Management functions for the client company” (Ivancevich, pg 201). An example is that a small organization that might not be able to afford an HR department can outsource the functions it needs for less cost. The organization needs to be cautious of the quality of company that it chooses though. Outsourcing can also give independent contractors the flexible schedules that they might need.
Outsourcing can also redirect the company’s energy and personnel to the major functions that need to be performed. You can save on training cost because if the position doesn’t exist, you do not have to worry about it. It can relieve some of the burden that some mangers might feel and you can maintain your company’s infrastructure if you are only focusing on certain functions. be
American workers can benefit from outsourcing if tedious repetitive tasks are outsourced allowing for them to focus on more interesting tasks. “A more enlightened, strategic