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  • #16
    Re: discussion outsourcing

    Originally posted by navymom35 View Post
    Hi all! I am new here, and thought I would jump in on this post.

    I have climbed the corporate ladder. I have owned 2 successful businesses. I am on my 3rd (hopefully successful) business.

    Cartergarth is spot on. Paul is not. I will respond to Paul first. Why is it when a corporation, no matter the size, tries to make money, it is called "greed"? But, when workers demand excessive wages, more time off, more benefits, less responsibility, etc. it is called "rights"? Training people in house will not assure a company of success.

    Outsourcing on employes started because US workers demanded more than companies could pay and keep their customer base. So, along comes outsourcing of people. We dug our own grave there. Before anyone tries to snarl at me, put yourself in their place. Companies are faced with rising labor costs, but they know if they give in, they will have to increase their product price. Now, they lose customers and guess what: now comes the lay-offs to employees. Even if you don't want to admit it, outsourcing benefits us. It keeps pricing low for whatever product we buy/use. I don't like hearing that funny accent either, but I put up with it because I don't want to pay double for that product/service.

    Same with outsourcing products. I am trying very hard to locate a LEGIT paper company. Sure, I could buy here in US, but the prices are kite-high, even with buying wholesale by the container quantity. I am a small business and can't afford those prices here. I have to have my product cheaper in order to compete with larger businesses. Sure, this product is marked up 1,000 times over. Companies are making a killing, but they are also having to pay out wages and expenses that I don't have to. Who is going to benefit: my customers. I will be able to offer product cheaper, make a little money myself, put it back into my local economy.

    I love America. I would buy here if I could see the benefit from doing that. But, like I said, we have dug our own grave, and now we are using guilt (buy American made!) to convenience buyers to bail us out.

    Biggest problem with outsourcing is finding the right company. I have been working on this project since January. I have found more scammers than I could count. Some are really, really good. There is no help from their government (or ours). You are on your own. But, I have high hopes that the payoff will be worth the headaches I am going through now.
    Your assertions are very right. Labour cost in developed economies is a real problem for employers. This is because of the rising competition from the developing countries. I don't see things changing in the short-medium term. It will take a re-engineering of business processes to see things improve in the west. More importantly as long as China remains.
    YoU cAn OnLy pAy FoR ScHooL buT u CaN't buY ClAsS

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    • #17
      Re: discussion outsourcing

      Companies opt for outsourcing for a variety of reasons depending upon their vision and needs. The top reasons amongst them are:

      1. Lower both operational and labor costs
      2. Free up internal resources that could be put in to effective use for other purposes is also one of the primary benefits.
      3. The best part is, by delegating responsibilities to external agencies, companies can wash their hands off functions that are difficult to manage and control while still realizing their benefits.
      4. It also helps them expand and gain access to new market areas.
      Supply Chain Logistics Management

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      • #18
        Re: discussion outsourcing

        Outsourcing has become one of the most important part of sourcing/ strategic sourcing activity. Reducing cost by outsourcing has always been the first priority. Other reasons of outsourcing can be – 1) Accessibility to certain technology
        2) Lack of enough capacity
        3) Market volatility
        4) More focused operations
        5) Being closer to the market and accessibility to the market
        Other than these broad level gains, there are industry and market specific gains that can be achieved through outsourcing.

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        • #19
          Re: discussion outsourcing

          Hi! I know that this thread's been quiet for quite some time but I couldn't help but jump in!

          Yes, I believe that outsourcing can help a company save money but that's dependent on the outsourcing partner that you get, right? I mean, if you're not careful, you might end up spending more for a service that isn't that great.

          On the same vein of topic, I found this video to be helpful for people unfamiliar with the topic of Outsourcing: Outsourcing: Is it good or bad? - YouTube

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          • #20
            Re: discussion outsourcing

            Outsourcing is still pretty much a thing nowadays. But going through the older posts I can still say that outsourcing doesn't always cut cost. It really does depend on the contract you get and who you get it with. But beyond that, I also think that it gives a business the ability and feasibility to concentrate on the other crucial business processes. Most of the time, when outsourcing, tasks are outsourced to vendors who specialize in their field. The outsourced vendors also have specific equipment and technical expertise, most of the times better than the ones at the outsourcing organization. Effectively the tasks can be completed faster and with better quality output (provided that the entity you got is good and it's a win-win situation).

            What do you guys think?

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            • #21
              Re: discussion outsourcing

              Outsourcing – I was scared every time I’ve heard that word. Way back Year 2007 when our division was outsourced. From 120 staff went down to 25 personnel. We don’t know what happened but what I remember is that - when my colleague received that “Pink Letter” they went ballistic. I saw few crying and that’s the ugly truth about it.

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              • #22
                Re: discussion outsourcing

                After 7 years There was a decrease in operational cost and I think our company were able to generate big savings. Im still in touch with my colleague and some are successful employee abroad and they earned 3 times more than what they have when they were employed here.

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                • #23
                  Re: discussion outsourcing

                  I think outsourcing helps certain businesses a lot. In terms of the business actually growing and winning more, and trying reducing prices as much as possible to make it affordable. I guess it all depends on what type of business it is.

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                  • #24
                    Re: discussion outsourcing

                    Yes, your right it helps a lot to a certain business - create a competitive advantage, good quality service and definitely reduced operational costs.

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                    • #25
                      Re: discussion outsourcing

                      Outsourcing is a smart move if well researched. Although it can be cost effect it can also be counter-productive too. I would consider cost but quality is the main reason any business should make a move, especially because the customer's opinion of the product or service is the end result. It needs to be handles with care. I would definitely consider cost, but quality is key.

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                      • #26
                        Re: discussion outsourcing

                        From our experience, outsourcing saves money in the long run because of the benefits that the company should have paid. And in that long stretch, the outsourced staff already knows the job. The trick of our company is to evaluate those outsourced staff and if deserving to be hired, we ask permission from the outsource agency. There more than 10 already that we had hired from outsourcing agencies that serve us.

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                        • #27
                          Re: discussion outsourcing

                          the idea of reducing costs remains the core but not throwing away other aspects like saving time and concentrating on more critical aspects of your operations Zara clothing company resembles a good example it outsourced the heavy tasks and kept under roof the computer added fabrics designs

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                          • #28
                            Re: discussion outsourcing

                            @Bobby JOE, that's a good viewpoint about other important aspects as time. But in our oursourcing, we treat the outsource as a trainee. There's always someone above him as if he is an understudy. And like what I said in my previous post, it that trainee learns the ropes then he can be hired and so we offer him a position. With the costing I did, outsourcing had saved us time and money.

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                            • #29
                              Re: discussion outsourcing

                              Originally posted by Eileen100 View Post
                              Outsourcing is a smart move if well researched. Although it can be cost effect it can also be counter-productive too. I would consider cost but quality is the main reason any business should make a move, especially because the customer's opinion of the product or service is the end result. It needs to be handles with care. I would definitely consider cost, but quality is key.
                              I think you're right, with quality comes the other things after.

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                              • #30
                                Re: discussion outsourcing

                                Companies that delegate features of their operate have the ability to pay attention to their primary company and what they are good at. As organizations grow, they are required to deal with company features outside of their skills. Management usually spends time and energy trying to learn and handle a system or operate that they may know nothing about. This diversion can take away from concentrating on their primary company. An example of this would be a food market that contributes movie lease to their company. If the shop places too much concentrate on it clip side of the operate, they may get off track on food which is their primary company.

                                Cost Savings
                                Cost benefits can be significant with contracted company features. Savings can be in settlement costs, production installation or costs associated with workplace. These benefits free up sources that can be used for other reasons.

                                Enhanced Quality
                                Quality can be enhanced by utilizing providers who have the skills and expertise for some features. An example of this might be freelancing a legal operate. A legal source would often be more prepared for service examinations, choosing and training that might not otherwise be available if done in-house.

                                Higher Customer Fulfillment Scores
                                Vendor contracts typically assurance certain levels of top quality and service that may be more difficult to handle in-house. An example of this might be if the handler phone calls in fed up, it is the retailer's liability to find an alternative to meet a contract.

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