Outsourcing Business Function - Assignment
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Added on 2020-02-24
Outsourcing Business Function - Assignment
Added on 2020-02-24
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OUTSOURCING BUISNESS FUNCTIONSOPORTUNITIES AND CHALLENGESINSTITUTIONAL AFFILIATION(S)Student name[Pick the date]
OUTSOURCING BUISNESS FUNCTIONSOPORTUNITIES AND CHALLENGES2LITERATURE REVIEW: OPORTUNITIES AND CHALLENGES OF OUTSOURCINGBUSINESS FUNCTIONSINTRODUCTIONThe process of contracting out or delegating work to people or agencies outside the business premises is called outsourcing business function. It may evolve in carrying tasks, job, or any operation where external third parties are contracted for significant time period[ CITATION Jim10 \l 1033 ]. The work outsourced can be performed in house or outside the firm. Outsourcing has gained much importance with changing nature of businesses[ CITATION Mic17 \l 1033 ]. In last decades, many big and small organisations which are getting associatedwith globalisation, considers outsourcing function as a positive approach. Geographical limitations are dealt with ease by facilitating outsourcing business functions like manufacturing, customer support, in house support, advertisement, etc.[ CITATION ITO17 \l 1033 ]The role of strategic management has become important not only to look after businesspractice carried within organisations, but also manage work that can be outsourced to get efficient work with cost reductive ways. Since outsourcing itself is a complicated process, a company may face various challenges while implementing it into business[ CITATION Pie12 \l 1033 ]. In this literature review opportunities of outsourcing in business along with major challenges faced by it will be reviewed and analysed with the help of research made by authors and researchers along with identifying gaps between the studies.
OUTSOURCING BUISNESS FUNCTIONSOPORTUNITIES AND CHALLENGES3SCOPE AND OBJECTIVES BEHIND OUTSOURCING BUISNESS FUNCTIONFigure: Reasons to implement outsourcing function in businessSource: [ CITATION Dia05 \l 1033 ]As shown in above figure, the reason to outsource work to external providers is various and thus becomes necessary to introduce it in business. Depending on the nature of business the outsourcing function may vary but the primary objective behind it lays the same i.e. cost reduction or gaining efficiency in work[ CITATION Tib06 \l 1033 ]. For example, in large manufacturing companies where great number of people is required like labours, designers, suppliers, contractors, etc. outsourcing provides great help as requirement of hiring full time staff is not necessary on outsourced areas. In manufacturing firms large number of parts are manufactured by outsourced companies which could otherwise have been expensive or difficult to manufacture by own. In customer service companies like call centres and BPOs, large firms outsource their customer related services in order to reduce costs of making separate department for them in house. Other human resource management tasks like
OUTSOURCING BUISNESS FUNCTIONSOPORTUNITIES AND CHALLENGES4employee training centres, payroll, staff benefit management, etc are largely outsourced in order to get higher quality work from experts[ CITATION Bus11 \l 1033 ]. Advertising plays a major role to make enhanced sale of product or services in business. Outsourcing has given industries a great backing here as large number of advertising companies and social media sites gets outsourced by businesses and carries the work in lesser time. Therefore in some or the other way business is largely depended on outsourcing function to expand their work areaand bring in efficiency. Work quality is improved by hiring experts along with enabling business owners to give core efforts in major activities for development of the firm. Althoughoutsourcing is becoming centre in today’s business functions, the challenges to improvise them are also increasing. Thus it becomes necessary on management part to understand the key benefits and potential challenges behind outsourcing function in business[ CITATION McM10 \l 1033 ]. OPPORTUNITIES OF OUTSOURCING BUSINESS FUNCTIONThe opportunities relating outsourcing function is been developing and is considered to be highly potential in business[ CITATION Tib06 \l 1033 ]. The advantages of it can be clearly seen in running of organisations which is observed and described by different authors. The following figure depicts major opportunity that can be gained by business while implementing outsourcing function.
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