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Essay / Research Paper Abstract
This 19 page paper considers how and why there have been increasing trends towards outsourcing various aspects of the supply chain. The paper looks at the underlying theories and then uses real life examples to illustrate the points raised. The bibliography cites 22 sources.
Page Count:
19 pages (~225 words per page)
File: TS14_TEoutout.rtf
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Unformatted sample text from the term paper:
to illustrate the points raised. The pressures that are seen in the commercial environment are pushing companies to find ways of reducing costs or adding value. The supply chain, or
value chain Porter refers to, is one place where costs can be reduced, or value added and with the passing of risk this is an areas where there is potential
for making savings with outsourcing. This is why many call centres are being moved to areas where there arte cheaper labour costs and why companies are looking to pass to
the risk or share the risk, this is also reflected in collaborative outsourcing, as seen with the ELUPEG initiative or a single contract as seen with CompUSA. These pressures are
continuing as such a range of different outsourcing techniques have been seen. The pressure from shareholders to increase earnings and the need to compete with numerous other firms means
that companies are always seeking ways of saving costs or adding value to their operations. One strategy that is being seen with increasing regularity is the use of outsourcing for
different aspects of the supply chain. Outsourcing may be defined as " A long-term, results-oriented relationship with an external service provider for activities traditionally performed within the company. Outsourcing
usually applies to a complete business process. It implies a degree of managerial control and risk on the part of the provider" (firmbuilder.com, 2005). This indicates how and why the
practice occurs. If the aim is to save money or add value then the motivation can be seen, however, it ids the elements of the supply chain that are
often targeted as the areas most able to realise these benefits in a significant manner. When looking at this we can consider the way that Michael Porter saw the value
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