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Efficiency In Outsourcing

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  • Efficiency In Outsourcing

    Sometimes, outsourcing services is the most efficient thing to do. For instance, we have many firms cleaning services. When hired, they are the ones to know when cleaning takes place and saves one the hustle of hiring individual workers. It leaves both parties satisfied.

  • #2
    Re: Efficiency In Outsourcing

    A supplier can deliver efficiently only when he has enough stock. In order to keep the inventory well stocked, the supplier need to have budget to acquire enough stocks. In most cases this does not happen. Therefore, we have to be in touch with more than one suppliers. If one supplier fails, there will be another to fulfill your demand.

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    • #3
      Re: Efficiency In Outsourcing

      Absolutely. Having an outsourcing company to do the specific works will bring productive results as they are expert in a specific niche. They will be able to concentrate on that specific job giving satisfaction to both the teams. Tasks done by the outsourcing companies of the specific niche will be professional and resourceful in all the ways. So, it is smart to let them do the specific works.

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      • #4
        Re: Efficiency In Outsourcing

        You have to be very careful when outsourcing, particularly when setting up the contract. It is essential to have requirements and a way to terminate it early if the supplier does not live up to expectations. I am familiar with a case where the company outsourced IT development and fired its IT department, only to have to hire IT testers and more developers to test and appraise the code the outsourcer was supplying. It meant doubling their costs.

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        • #5
          Re: Efficiency In Outsourcing

          We should attempt to benchmark all non core business processes (other than our key competencies) against alternative service provider (outsource), in order to evaluate cost effectiveness and efficiencies. This benchmarking practice helps improve business performance (i.e. P&L).

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