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Essay / Research Paper Abstract
A 3 page paper that discusses some of the activities a company might outsource and why and which activities a company should not outsource. The writer comments on the financial benefits and legal considerations. Bibliography lists 6 sources.
Page Count:
3 pages (~225 words per page)
File: MM12_PGoutsy9.rtf
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Unformatted sample text from the term paper:
outsource and whom to outsource to. Outsourcing is a strategic activity that is intended to contact with other companies to perform certain services. As a strategic tool, it can help
a company become more effective, more productive and more efficient (Tyme Management, 2000). When considering outsourcing, a company should think about these criteria: is the activity essential for the companys
profits and success; is the job routine, is the task something that only needs to be completed intermittently, can the activity be completed cheaper in-house but it takes away resources
that could be put to more productive use elsewhere in the company, is the skill needed to perform the activity so specialized that it is not practical to hire an
in-house person to do it, and/or is the activity one that employees do not like doing (Tyme Management, 2000). Some of the activities that may be outsourced effectively, depending
on the company, are human resource activities like training, information technology development, logistics, technical support part of customer service, and security management. Core activities should never be outsourced. In human
resources, training is one of the activities that can be successfully outsourced as can benefits administration (Johnson, 2004; Stroh and Treehuboff, 2003). In both cases, the company can save money
while accessing experts to perform these activities (Stroh and Treehuboff, 2003). This also gives in-house employees more time to focus on their core responsibilities. There are numerous reasons to outsource
logistics. It allows the company to focus on their core competencies, it saves money by reducing direct costs, it usually decreases delivery times, and it reduces the need for warehousing
(Isense India, 2008). These benefits help the company become more efficient and gain greater customer satisfaction (Isense India, 2008). Outsourcing activities related to information technology is very common. The
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