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ASC 730 - The Importance of Outsourcing in Business | Business Research

   

Added on  2020-03-01

13 Pages2811 Words55 Views
Running head: BUSINESS RESEARCH Business ResearchName of the Student:Name of the University:Author note:

1BUSINESS RESEARCH Table of ContentsIntroduction:....................................................................................................................................2Project Objective:............................................................................................................................2Project Scope:..................................................................................................................................3Literature Review............................................................................................................................4Advantages of Outsourcing in Business..........................................................................................4Outsourcing and Cost Advantage in Business.............................................................................4Enables an Organization to Concentrate on the Core Processes.................................................5Increased Efficiency in Business.................................................................................................6Access to Skilled Resources........................................................................................................6Time Zone Advantage in Outsourcing........................................................................................6Disadvantages of Outsourcing in Business..................................................................................7Exposure of Sensitive Data..........................................................................................................7Absence of Managerial Control...................................................................................................7Risk of Hidden Costs that cannot be anticipated before..............................................................8Lack of Quality Assurance..........................................................................................................8Conclusion.......................................................................................................................................8Reference List................................................................................................................................10

2BUSINESS RESEARCH

3BUSINESS RESEARCH Introduction:The importance of outsourcing in business organizations operating in today’s globalworld cannot be overstated. Outsourcing is defined as a strategic action of an organizationwhereby the outside resources are being utilized by a company for accomplishing its businessactivities that are otherwise handled by the internal staffs and resources of the company. Manycompanies have been able to benefit immensely by outsourcing their business activities.Companies such as Google, Unilever, Alibaba, Acer, and others have been able to boost theirbusiness growth by outsourcing their activities only (McIvor 2016). The organizationalflexibility that a company can achieve is the most important advantage of outsourcing business,and yet there are potential drawbacks such as security threat as well. Many companies arerecently outsourcing their business activities as it lets them work with global talents, and helps acompany focus on the core functions of business. Considering the importance of outsourcing ofbusiness operations, the paper intends to investigate and critically analyse the advantages as wellas disadvantages of outsourcing business activities in the globalized world of today. Project Objective:In the era of globalizations, most of the companies believe in working in an integratedway, in order to simplify its job as well as to reduce the cost. The cost and quality consciouscompanies prefer to outsource most of the non-core business works to the Asian countries likeIndia, Malaysia and Singapore to ensure that it can focus on the core functions like businessadministration. This is why, a large part of the business functions such as payroll, inventorymanagement as well as transaction processing, are being outsourced the external vendors. Whilecost effectiveness, and wide access to skilled resources are indeed two important benefits a

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