Advantages and Disadvantages of Outsourcing: A Case Study of Hewlett Company

Business research

Business research
Table of Contents
Introduction...............................................................................................................1
Project objective........................................................................................................1
Project scope..............................................................................................................1
Literature Review......................................................................................................1
Reasons of outsourcing..............................................................................................2
Benefits of outsourcing..............................................................................................3
Drawbacks of outsourcing.........................................................................................5
Impact of outsourcing................................................................................................6
Conclusion.................................................................................................................6
References.................................................................................................................7
Appendix...................................................................................................................9
Introduction
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Business research
Outsourcing is considered as one of the important technique which is considered by many
companies in the present era. By considering this method, the emphasis is given on the overall
cost so that it can be reduced by transferring the functions of the company to the other party. The
organizations outsource the overall services so that efficiency of the employees can be
maintained. By focusing on this strategy, it has been examined that operating costs and also
profits are achieved which impact on the growth of the company (Aubert, Kishore & Iriyama,
2015).
The functions are also outsourced so that it can be simple for the company to manage the
entire activities. When the activities are outsourced it has been seen that overall level of
satisfaction of the customers can be affected. There are any companies who are considering the
outsourcing method as it can help to enhance the overall market share. In the paper the
discussion will be made on the Hewlett Company who focuses on outsourcing the functions.
This report will emphasize on the advantages and disadvantages related to outsourcing a function
to the other company.
Project objective
In this report the focus will be given on evaluating the advantages and disadvantages of
the functions that are given by the company to the third party. The objective is to evaluate the
advantages and disadvantages of Hewlett Company.
Project scope
It has been investigated that outsourcing is one of the important activities that are
considered by the company to manage the overall work. In this report, the Hewlett Company is
selected in context to advantages and disadvantages of outsourcing. The report will also
emphasize on the strategies that should be considered so that company can achieve success in the
market.
Literature Review
According to Plugge & Bouwman 2017, outsourcing is considered as a technique which
is considered by majority of the organizations in the present era. It has been seen that company
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Business research
take help from the other company so that activities can be managed and can be completed with
efficiency. It is necessary for the company to focus on this technique as it can help to complete
the activities in an effective manner. By focusing on online and offline medium, the operations
can be outsourced easily. The involvement of the third party is seen and the activities are
transferred to be completed on time. It is necessary for the company to consider this technique as
it can help to achieve large market share.
Hewlett is considered as the biggest companies in the IT sector. Headquarter of the
company is in Palo, California. The operations which take places in the organization are related
to information technology and cloud programming. The company has also emphasized on
outsourcing the functions to the third company so that it can be completed on time with
efficiency (Dhar, 2012).
Reasons of outsourcing
According to González, Gascó & Llopis 2016, the technique of outsourcing is considered
as an internal process of the company and the company decides the third party to outsource the
activities. The overall operations of the company are controlled by thee third party so that it can
be easy to achieve positive outcome. It also emphasizes on minimizing the entire operational
costs. There are many choices that can be taken into consideration so that work efficiency can be
maintained. Hewlett emphasizes on transferring the operations to other company so that it can be
easy to manage and also it reduce the workload of the company. Hewlett is one of the largest
organizations that emphasizes on outsourcing the activities to the third party so that it can be
easy to complete the activities on time with minimization of the operational cost. It can be
investigated that when operations are transferred to the third party and if the third party does not
complete it in a proper manner then it can give adverse impact on the growth of company.
According to Eggert, Böhm & Cramer 2017, the objective to outsource the activities to
third party is related with maintain the overall service quality so that satisfaction level can be
enhanced. It also impacts the opportunities which are concerned with employment in context to
skills and experience. It is important to consider the strategies so that operations can take place
smoothly. The focus should also be given on the strategies that can help the end users to manage
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