Announcement

Collapse
No announcement yet.

discussion outsourcing

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • discussion outsourcing

    Guys, why organization chooses outsourcing or offshoring outsourcing?
    1 self-limited.
    2 improve the competitive ability of product
    3 reduce cost
    and something else?

  • #2
    Re: discussion outsourcing

    I would expect most companies outsource to reduce costs. Are we talking about oursourcng supply/manufacturing or services?

    Maybe run a poll?
    Regards

    Top Link - Site Founder

    Comment


    • #3
      Re: discussion outsourcing

      Many things can be outsourced, it depends on this activity core or non-core?
      What about BPO?

      Comment


      • #4
        Re: discussion outsourcing

        Outsourcing is a buzz word, and everyone jumps at it, Since decades China and some Asian countries were already manufacturing and supplying LVG to the west. But lately with Globalization, Oil Prices,labor costs, Currency Fluctuations forced lot of companies to seek cheaper means, closer to their markets to save on increasing logistics costs, Another area was the IT development and support to India thanks to the Internet revolution, but then one has to be careful in selecting and choosing the Product or services to outsource, because price is one factor, qaulity is another. Just today I was reading the Orange UK is moving back its Call center from India to UK because of service levels.

        Out sourcing is strategically driven and cannot be done purely on economic reasons, i.e. a lot of customers in west are concerened about their data security with Banks and Telecoms having call centers in Asia.

        This is a huge area and requires a lot of research & planning for each line of business or even product makes a difference.

        if you have any specific item in mind maybe I can share some experience or thoughts on it. BPO is another area of concern because of privacy and data security and needs to be thoroughly researched.
        thanks
        Kay

        Comment


        • #5
          Re: discussion outsourcing

          I agree with the top few, the main reason has got to be reducing costs. It has become so expensive to produce anything in this country outsourcing makes it's so much more cost efficient. Not to mention the large talent pool that is out of this country.

          Comment


          • #6
            Re: discussion outsourcing

            Originally posted by stevenbaker100 View Post
            I agree with the top few, the main reason has got to be reducing costs. It has become so expensive to produce anything in this country outsourcing makes it's so much more cost efficient. Not to mention the large talent pool that is out of this country.
            Very well said! There are lots of skilled people who are willing to work with low pay on outsourcing!

            Comment


            • #7
              Re: discussion outsourcing

              Everyone is outsourcing.. It's the most common anyone is doing.

              Comment


              • #8
                Re: discussion outsourcing

                Originally posted by silliker View Post
                Everyone is outsourcing.. It's the most common anyone is doing.

                True. Everyone is outsourcing because there are plenty of benefits when you outsource, its not just expanding your company and gaining more profit but also giving job opportunities to other people.
                Last edited by SCFAdmin; 11 03 19, 23:58.

                Comment


                • #9
                  Re: discussion outsourcing

                  MHS seems to be the king of outsourcing. As they continue to shutdown offices here in the US and move everything offshore to India, one has to wonder if they have the US market in their best interest. After all, MHS & their affiliate Atpar have not sold 1 module to any hospital outside North America. With a 70% implementation failure rate one would wonder if the products are anything more than an attempt to dazzle healthcare or baffle them with BS.

                  Latest, closing of their Atpar Support offices for outsourcing to India call centers. Would your patients be happy with outsourcing their medical needs to someone that can't speak English?

                  Got to love corporate greed.

                  Paul

                  Comment


                  • #10
                    Re: discussion outsourcing

                    Outsourcing will also increase productivity levels that will lead to growth and expansion of the business.

                    Comment


                    • #11
                      Re: discussion outsourcing

                      Originally posted by cartergarth View Post
                      Outsourcing will also increase productivity levels that will lead to growth and expansion of the business.
                      Not always sadly.....

                      Outsourcing to the right people, under the right contract, with a well implemented plan. Sure !
                      Regards

                      Top Link - Site Founder

                      Comment


                      • #12
                        Re: discussion outsourcing

                        Originally posted by TopLink View Post
                        Not always sadly.....

                        Outsourcing to the right people, under the right contract, with a well implemented plan. Sure !

                        Yes, considering that you're in the right service provider providing quality services your business will be a productive one.

                        Comment


                        • #13
                          Re: discussion outsourcing

                          Originally posted by cartergarth View Post
                          Outsourcing will also increase productivity levels that will lead to growth and expansion of the business.
                          Outsourcing seldom produces increased productivity levels. While it may provide a reduced cost to the vendor, it typically results in increased points of failure for the customer.

                          There is no value in a product if the customer can't get effective communication and support for the product they purchased. Putting it on the customer to have to figure out what the outsourced support is attempting to say may be cheap for the vendor but a cost that has to be calculated when purchasing a product. First question to ask when purchasing a product is "Where is the support organization located?". If the response is not the country you are implementing the solution in, then you have a problem.

                          As Dell found out when they tried to outsource, customers do not want to deal with the communication barrier and will revolt.

                          Outsourcing = Lack of concern for your customers

                          Paul

                          Comment


                          • #14
                            Re: discussion outsourcing

                            Hello

                            Sorry guys I totally disagree with your logic of outsourcing i.e. cost reduction.......

                            Out sourcing can increase your costs in many ways - the main problem I have is that compainies that run the 'out souncing' have no vested interest in reducing your costs - they
                            are more interested in keeping you happy with small reductions in PRICE but not necessarily in COST.

                            I would think that training your buyers in a very professional way would be much more productive than outsourcing. In house buyers can save most companies very large amount
                            of cost if they understand how to buy, work with quality and manufacturing etc.

                            The other problem I have seen in my many years of being a Supply chain Director is bribery and kick backs. This is very common in the Far east and is really a normal practice for
                            many. This can not only cost amazing amounts of cost saving but also reduc the quality of the product you receive in that many outsourcers will use a company just for the kick back
                            they receive and not the one that would be best for your company.....

                            Guys TRAIN you buyers to understand that 'PRICE' means nothing - 'COST' means everything - and you will find that in house buyers will save you vast amounts of cost.

                            Comment


                            • #15
                              Re: discussion outsourcing

                              Originally posted by cartergarth View Post
                              Outsourcing will also increase productivity levels that will lead to growth and expansion of the business.
                              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.

                              Comment

                              Working...
                              X