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Essay / Research Paper Abstract
This 9 page paper looks at the concepts and practice of outsourcing and off shoring, explaining what the terms mean, why and how practices occur and the potential benefits associated with both practices. The bibliography cites 11 sources.
Page Count:
9 pages (~225 words per page)
File: TS14_TEoffout.rtf
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Unformatted sample text from the term paper:
commercial environment. Outsourcing takes place where one firm develops a contractual relationship with another external firm to provide services that are usually undertaken internally (Criscuolo and Leaver, 2006). The
nature of this relationship is often long term in nature and may result ion a close working partnership, different functions that may be outsourced include the simple concept such as
in the outsourcing of parts manufacture where several forms may supply parts as part of the supply chain, to more integral parts of the operations, such as the outsourcing of
payroll management, IT functions and one of the most common has been customer service operations. Key in this definition of outsourcing is the lack of location, although many firms that
undertake outsourcing may be abroad this is not a necessity, firms such as Tata in India and Toyota in Japan have complex relationships with suppliers, many of which may be
seen as outsourcing partners and are not only in the same country, but are often expected to set up operations close to the companys own manufacturing plants. However, this is
a complex relationship that is also a supply relationship. In cases where functions such as payroll or other HR management functions are outsourced there may be benefits to be gained
for the use of specialised firms, but with the potential of he firm to be located in the same country. Offshoring is where functions usually carried out by the
firm are moved to enter locations in a different country, this may incorporate outsourcing, so that the functions are moved offshore to a third party supplier, but the firm may
also set up locations in other countries either as subsidiaries or with a strategic alliance such as with a joint venture, to undertake the functions, Dyson and Dell have both
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