Advantages and Disadvantages of Outsourcing: A Case Study of IBM

Business Research

Business research
Table of Contents
Introduction......................................................................................................................................1
Project objective..............................................................................................................................1
Project scope....................................................................................................................................1
Literature review..............................................................................................................................1
Why functions of the company are outsourced?..........................................................................2
Advantages of outsourcing...........................................................................................................2
Drawbacks....................................................................................................................................5
Impact of outsourcing..................................................................................................................8
Conclusion.......................................................................................................................................8
References........................................................................................................................................9
Appendix........................................................................................................................................11
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Business research
Introduction
Outsourcing consists of foreign and domestic contracting and also includes the
transferring of the business process .Outsourcing is considered as a practice that helps to focus
on managing the control of the public sector and private enterprise. It is a business practice in
which the parties are hired outside the company so that services and activities can be completed
in a proper manner. This is a method that helps the company to achieve growth in the
competitive market. It has been analyzed that outsourcing is done on the domestic as well as one
of the international platform so that operations can be managed.
This paper will emphasize on the advantages and disadvantages related to outsourcing so
that activities can achieve success in the market. The discussion will also be based on the
company which is IBM.
Project objective
If the emphasis is given on the entire discussion it can be analyzed that the aim is to focus
on the advantages and disadvantages of outsourcing related to IBM Company. When outsourcing
of the activities takes place it has been seen that there are various advantages and disadvantages
related to it. In this literature review will also be done by focusing on the concept of outsourcing
related to IBM.
Project scope
There are various advantages and disadvantages in context to the operations. The scope
of outsourcing is wide and it helps the companies to maintain the image in the market.
Outsourcing can assist the company in accomplishing goals and objectives.
Literature review
According to Aubert, Kishore and Iriyama 2015, outsourcing is a technique which is
considered by the companies so that responsibilities can be transferred to the third party. It also
helps to attain positive outcome which directly impact the overall operations of the organization.
Outsourcing also helps to maintain efficiency in the overall operation of the company. It is the
duty of the third party to maintain the process of outsourcing as they accept the responsibilities
which are transferred by the first party.
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Business research
IBM is also considered as the biggest company who emphasize on outsourcing the
activities so that activities can be managed in the right manner. If the activities transferred to the
third party are not performed in a proper way then impact can be seen on the overall growth of
the company. The responsibilities are transferred by focusing on making the agreement with the
third party. When third party makes the agreement they agree to complete the activities
according to the expectation level.
IBM is considered as one of the largest company that takes into consideration the
technique related to outsourcing. The company is the biggest American international
technologies company that established on 1911. Sector in which company deal are cloud
programming and computing. Outsourcing is the popular approach that is taken into
consideration by the organization so that operations which are given to the third party can be
controlled in an effective manner. The operations of the company are outsourced in Singapore
and India. Just due to these outsourcing in the market, the company achieved success in the
competitive market.
Why functions of the company are outsourced?
Bayramusta and Nasir 2016 stated that, outsourcing is a technique which helps in
transferring the activities of the company to the third party. It has been examined that there are
more than 40 data centers of the company and the operations are related with the IT sector. It is
also linked with the operations of the company and by outsourcing the services which are
rendered can enhance the customer satisfaction.
The aim of the organization in context to outsourcing is related with maintaining the
quality of the services rendered in the market. It has been analyzed that outsourcing process
considered by the third party also enhances the rate of employment. It is necessary for the
company to emphasize on considering the strategies so that implementation of the operations can
help to benefits. There are various advantages concerned with outsourcing.
Advantages of outsourcing
When the operations of the company are outsourced then there are various advantages
that can be derived by the organization. It has been analyzed that outsourcing is the best
technique that can assist in attaining the overall competitive advantage. If outsourcing technique
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