1MANAGING ACROSS BORDERS Executive Summary The assignment has thrown light on analyzing the different kinds of usages of outsourcing of the business activities which plays a vital role in the growth of the companies. In addition, it has been seen that there are different issues such as theft of the private and confidential data which can create huge impact on the growth of the companies are required to be addressed appropriately which will be suitable for the overall success and growth of the companies in a true manner.
2MANAGING ACROSS BORDERS Table of Contents Introduction...................................................................................................................3 Overview of Concept Outsourcing................................................................................3 Merits and Demerits of Outsourcing.............................................................................3 Advantages...............................................................................................................4 Disadvantages..........................................................................................................4 Analysis of Role of Outsourcing in Global Business Scenario.....................................5 Conclusion....................................................................................................................6 References...................................................................................................................7
3MANAGING ACROSS BORDERS Introduction The respective assignment helps in the understanding of the outsourcing related activities in the business scenario. The outsourcing is considered to be the most cost-effective and saving strategy when it is being utilized properly which is more affordable for the different companies to manage the different core activities in business in a suitable and appropriate manner. The main aim of the respective essayistounderstandthedifferentkindsofprosandconsoftheconcept outsourcing in the business-related activities along with role of the same in managing the different core and side business activities together. Overview of Concept Outsourcing AscommentedbyYousufandFelföldi(2017),inthepresentcomplex business environment, the development of the business mainly depends on effective asset management which is inclusive of the maximum related concentration of the different resources on core activities of the company. In such scenario, as opined by Jyoti, Arora and Kour (2017), outsourcing of the processes related to the business which is considered to be the emerging view related to optimization of the various enterprises. In addition, outsourcing is considered to be the transfer of the non-core activities of the business to the third parties which can perform such activities within a specified time span. Moreover, as stated byWachira, Brookes and Haines (2016), there can be outsourcing of the different activities which includes the involvement of the employees of the other firms and in the today’s present scenario, the outsourcing is utilized in various kind of scenarios and it is mainly used in the logistics and warehouse aspects. Merits and Demerits of Outsourcing As stated byVaxevanou and Konstantopoulos (2015), the outsourcing has included the different kinds of advantages and disadvantages which affects the growth of the firms negatively. Outsourcing does have different advantages which are significant in nature and there are different number of corporations which have accepted the respective policy of the business and they are facing numerous kinds of benefits in the present scenario. In addition, as commented byFountain and
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4MANAGING ACROSS BORDERS Langar (2018)the proper transferring of the business-related activities and functions may bring the sound savings as the business-related activities in the low-cost related countries are cheaper in nature than inside. Advantages As commented byDavari and Rezazadeh (2015), the outsourcing of the different activities helps in reduction of the costs whenthecompanies opt for outsourcing. These are the different costs which refers to the expenses for the space of office or the employee’s fees which can be outsourced and it is proved to be one of the most suitable and cheaper than the different workforce who will be coming from the developed countries. Secondly, as opined byAlojail and Corbitt (2016), the other widely known benefit which can be provided through outsourcing is the high speeding of time wherein the outsourced work is being done in a suitable manner. The great example for utilization of the time in the company is the hiring related procedure of the different employees for the proper creation of the new team and outsourcing of time will be suitable for the growth of the firms. Moreover, as opined byAli et al. (2017), the outsourcing of the different activities in business can lead to the operational efficiency wherein the different individuals or the companies can have opportunity to concentrate more on the different initial charges and they can perform better in the different other departments which are core business related activities suitably. Disadvantages On the other hand, as commented byAli et al. (2017), there are different disadvantages of the outsourcing of the business activities which includes the risks related to quality as it can affect the reputation and brand image of the company negatively. For instance-When a customer purchases a particular product from a shop, however after their purchase, it has been seen that there is no such substitute available, in such scenario, the company needs to contact the outsource supplier which will be suitable for carrying the burden of the damaged product. The other aspect which can be the major disadvantage of the outsourcing is the security as there can be loss of data along with theft of the data which can affect
5MANAGING ACROSS BORDERS the growth of the company negatively. It can be seen that it is important for the different customers to know that it is being respected and they can trust the company relating the same. However, the confidentiality of the data can be threatened which will be affecting growth of company inappropriately. Analysis of Role of Outsourcing in Global Business Scenario In the present scenario of the complex business environment, there are different utilization of outsourcing of the activities which leads to the suitable growth prospectsofthecompany.Throughtheimplementationofoutsourcinginthe different business organizations, it will be beneficial in reduction of the different risks which are associated with the same as they are being passed on to the organization which provides the services related to outsourcing. Additionally, as commented by Ali et al. (2018), there can be decrease in the overall percentage of the capital investments that often goes to the contractor company and the main focus is on the corecompetencies whichis suitablein promotingtheimprovement of thekey processes as well as gaining the additional kind of competitive advantage that will be suitable for enhancing the future in a proper manner. For instance-Slack is one of the suitable applications through which it was suitable in communicating with the different in-house staffs along with various other teams (Slack.com 2019). However, after outsourcing the beta testing, Slack was being able to receive the different essential feedback which helped them in creating a tool along with personality among the different customers in the market. From the respective instance, it can be identified that outsourcing helps in allocation of the specific processes of business to the specialist kind of external service provider which makes the tasks more effective. As commented byKim, Jang and Yang (2017), there are few items which are temporary and due to the same, the proper intention of hiring the experienced professionals in such scenario helped the companies in making the aspect better and due to the same, it has been successful in enhancing the business-related opportunities in a positive manner. For instance-TransferWise is one of the other suitable examples which is the most widely used money transfer aspect. It is helpful in monitoring and managing the
6MANAGING ACROSS BORDERS different payments which are being made to the remote employees. and it is suitable for the business-related growth in a positive manner (Transferwise.com 2019). The respective instance helps in understanding the different kinds of aspects which are related to outsourcing and it has been helpful for the companies in outsourcing the activities suitably which will be providing them benefits. Conclusion Therefore, from the above, it can be concluded that outsourcing means the proper transfer of the processes related to logistics to the third party. The actual essence of the services is regarding reduction of the costs associated with the company, proper implementation of the supply of the different products along with involvement of one or more than one qualified professional who will be suitable for making the process effective. The different examples of the companies have helped the overall process related to outsourcing that enhanced the growth prospects of the companypositivelywithinaspecifiedtimelinealongwithbecomingthemost advantageous solution for the growth of the company suitably.
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7MANAGING ACROSS BORDERS References Ali, S., Hongqi, L., Khan, S.U., Zhongguo, Y. and Liping, Z., 2017. Success factors forsoftwareoutsourcingpartnershipmanagement:Anexploratorystudyusing systematic literature review.IEEE Access,5, pp.23589-23612. Alojail, M. and Corbitt, B., 2016. Does the ITIL Service Quality Framework Improve Outsourcing Relationship Outcomes?.Journal of Advanced Management Science Vol,4(6). Davari,A.andRezazadeh,A.,2015.Themeasurementofentrepreneurial outsourcing:preliminaryscaledevelopment,dimensionalityassessment,and construct validation.Journal of technology management & innovation,10(2), pp.211- 224. Fountain, J. and Langar, S., 2018. Building Information Modeling (BIM) outsourcing among general contractors.Automation in construction,95, pp.107-117. Jyoti, J., Arora, H. and Kour, S., 2017. Outsourcing and Organizational Performance: RoleofCostLeadership,DifferentiationandInnovationStrategies.Sustainable Competitive Advantage: A Road to Success,171. Kim,S.H.,Jang,S.Y.andYang,K.H.,2017.Analysisofthedeterminantsof Software‐as‐a‐Serviceadoptioninsmallbusinesses:Risks,benefits,and organizationalandenvironmentalfactors.JournalofSmallBusiness Management,55(2), pp.303-325. Sclak.com2019Whereworkhappens|Slack(online)Retrievedfrom https://slack.com/intl/en[Accessed on 16th August 2019] Transferwise.com2019TransferMoneyOnline|SendMoneyAbroadwith TransferWise (online) Retrieved fromhttps://transferwise.com/[Accessed on 16th August 2019] Vaxevanou, A. and Konstantopoulos, N., 2015. Basic principles the philosophy of outsourcing.Procedia-Social and Behavioral Sciences,175, pp.567-571.
8MANAGING ACROSS BORDERS Wachira, W., Brookes, M. and Haines, R., 2016. Viewing the impact of outsourcing fromaKenyanperspective.AsianJournalofManagementScienceand Economics,3(1), pp.24-43. Yousuf, A. and Felföldi, J., 2017. The Relationship Between Transaction Costs And Flexibility In Outsourcing: A Conceptual Framework.The Annals of the University of Oradea. Economic Sciences,26(1), p.883.