BUS 101: Taking Sides - Outsourcing Business Strategy Presentation

This presentation provides a comprehensive overview of outsourcing as a business strategy. It begins with an executive summary and defines outsourcing, exploring various elements that can be outsourced, such as system integration, e-commerce, and maintenance. The presentation includes real-world examples like Alibaba.com and Nike, and presents current outsourcing statistics, highlighting the IT security department's prominence. It then delves into the advantages of outsourcing, including improved focus on core business activities, increased efficiency and cost advantages, and greater competitive advantage. The presentation concludes with a recap of the arguments and a list of references, providing a strong case for outsourcing as a valuable strategy for businesses seeking to enhance their operations and market position.

OUTSOURCING

 Executive Summary
 Definition of Outsourcing
 Elements which can be Outsourced
 Examples of Outsourcing
 Current Outsourcing Statistics
 Advantages of Outsourcing as Business strategy
 Recap of Argument
 References
TABLE OF CONTENTS

 The presentation threw light on analyzing the importance
of outsourcing of the different business related activities
 Furthermore, the advantages of outsourcing along with
examples have been analyzed which provided a brief
overview on the importance of the same
 Lastly, the different elements of outsourcing have been
analyzed which will be making the operations efficient
EXECUTIVE SUMMARY

 It is the business practice of hiring party which
is outside the organization as to perform the
different activities which were previously
performed traditionally in-house by the
employees of the organization (Schniederjans,
Schniederjans & Schniederjans, 2015)
 It helps in providing the different services
which are scalable, secure and efficient while
improving the overall costs along with reducing
the costs
OUTSOURCING

 System Integration along with Network of
Data
 Mainframe of the data center
 E-commerce and development of the
applications
 Maintenance along with Repair
 Voice integration along with
internet/intranet
WHAT CAN BE OUTSOURCED

 Alibaba.com is China’s eBay which started as a
small internet organization. In present scenario,
Alibaba.com is biggest worldwide marketplace and
in the year 2014, it scored biggest IPO. In early
years, they used to outsource their website to US
firm which helped them in growing faster
(Duhamel et al., 2017).
 Nike sportswear outsources the production of the
different products and services to various overseas
manufacturing plants
EXAMPLES OF OUTSOURCING TODAY

CURRENT OUTSOURCING STATISTICS
As per the diagram, this can be analyzed that the IT security department have
occupied top position in the list of 59% and 78% of the businesses feel positive
about their relationship with outsourcing company.

Improvement of Focus on Core Business Activities
 Outsourcing helps in freeing the business as this will
assist them in focusing more towards strengths.
 It will be allowing the staffs as to concentrate on the
main tasks and on the future strategy (Oshri,
Kotlarsky & Willcocks, 2015)
 It will help in investing in research and development
and this will help in delivering value added services
to the customers
ADVANTAGES OF OUTSOURCING

Increased Efficiency and Cost Advantage
 It will help in performing the job better as it will be
done by the expert professionals who have
understanding in the respective domain (Badampudi,
Wohlin & Petersen, 2016)
 It will lead to increase in productivity along with
efficiency in the process which will therefore
contribute towards the bottom-line of the
organization accordingly
 Due to outsourcing of the activities, this will incur
low cost and provide better quality as well
ADVANTAGES OF OUTSOURCING

Greater Competitive Advantage
 Outsourcing will help in leveraging knowledge along
with skills with the complete supply chain
 It will provide access to the different capabilities along
with facilities which are in the reach of the individuals
(Uygun, Kaçamak & Kahraman, 2015)
 It will help in decreasing lead time which will be taken
by the products to reach the market
 There are different companies which are specialized in
outsourcing and this will improve their overall
capability appropriately
ADVANTAGES OF OUTSOURCING

 It can be analyzed that outsourcing is one of the most effective
strategies which are being adopted by the companies as to gain
more competitive advantage in the market
 Additionally, it is the common practice of contracting the different
functions of the business processes and functions to the third party
providers which makes the work easier and it is delivered in time
 Due to outsourcing of activities, it has increased efficiency and
controlled costs have been helpful in releasing capital for the
business related activities
 It has been helpful for the companies in gaining competitive
advantage as the tasks are being performed by the expert
professionals
Recap of Argument

Badampudi, D., Wohlin, C., & Petersen, K. (2016). Software component decision-making: In-house, OSS, COTS or
outsourcing-A systematic literature review. Journal of Systems and Software, 121, 105-124.
Duhamel, F., Gutiérrez-Martínez, I., Macias-Figueroa, J. E., Luna-Reyes, L. F., & Picazo-Vela, S. (2017, June). Best
Practices in the Management of IT Outsourcing in the Public Sector. In Proceedings of the 18th Annual International
Conference on Digital Government Research (pp. 596-597). ACM.
Oshri, I., Kotlarsky, J., & Willcocks, L. P. (2015). The Handbook of Global Outsourcing and Offshoring 3rd Edition. Springer.
Schniederjans, M. J., Schniederjans, A. M., & Schniederjans, D. G. (2015). Outsourcing and insourcing in an international
context. Routledge.
Uygun, Ö., Kaçamak, H., & Kahraman, Ü. A. (2015). An integrated DEMATEL and Fuzzy ANP techniques for evaluation
and selection of outsourcing provider for a telecommunication company. Computers & Industrial Engineering, 86, 137-
146.
REFERENCES