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  • J Wen
    started a topic discussion outsourcing

    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?

  • Corzhens
    replied
    It looks like outsourcing is also getting popular in our country. I was really surprised to learn that our company has some outsourced staff not only for supervisors but also for assistant manager and lately there’s also a manager who is an outsource. The only reason I can think of is the company saves on the long term benefits particularly retirement pay and some other benefits that are earned by the collective bargaining agreement. An outsource is considered an employee of another company even if he has been working for long already.

    Leave a comment:


  • sastabpo
    replied
    Re: discussion outsourcing

    Outsourcing is the latest rage among the budget conscious businesses all over the world. Outsourcing is the process in which companies entrust businesses processes of their business functions to external vendors in offshore locations. Outsourcing will enable businesses to reduce operational costs like manpower and infrastructure that they would have needed to carry out these operations. Outsourcing ensures a steady increase in your productivity, quality of services, profits and in the overall growth of business. Outsourcing have various procedures like transaction processing, data conversion services, data entry services, product data entry, ebook data entry services, web research, inventory management and many more.

    Advantages of outsourcing:
    • Cost Benefits
    • Save on Infrastructure and Manpower
    • Top Quality Output
    • Focus on Core Activities
    • Availability of Skilled Resources
    • Time Zone Advantage
    • Quicker Turn Around Time
    • Lessen in House Workload
    • Increase Customer Satisfaction
    • Make Your Businesses More Competitive
    • Ensures Business Growth

    Hope this helps !!!

    Leave a comment:


  • agentchina8
    replied
    Re: discussion outsourcing

    As all companies do the outsourcing for better service for the customers.

    Regards

    Leave a comment:


  • TheFunneler
    replied
    Re: discussion outsourcing

    Outsourcing is awesome. I think the only reason a lot of internet millionaires are there is because outsourcing is one of this low-key ways of doing things that are impossible in higher-value currencies, while the exchange and expectations turn what was once $10,000 in profit into $40,000 or $50,000+, better than any stock option out there

    Leave a comment:


  • Corzhens
    replied
    Re: discussion outsourcing

    Outsourcing is a mutual benefit that's why poorer countries like the Philippines provide assistance to prospective outsourcing company. An outsourcing company provides employment to the host company which is very important to the economy. And in return, the labor is cheaper for if not then why would that company outsource here? In its entirety, outsourcing is a partnership of sorts between the foreign outsourcing company and the local company because both of them benefit from the business not to mention the benefits that the employees get.

    Leave a comment:


  • xTinx
    replied
    Re: discussion outsourcing

    I would beg to disagree. I guess you have yet to read more about outsourcing as you do not seem to understand that in a general sense it benefits both offshore companies and outsourcing firms stationed in developing countries, where labor is cost-efficient. Besides, start-up companies could not afford the operational costs within their own country. You cannot force them to generate capital that they don't have. You have to respect their choice and if the choice creates a win-win situation, then all's well that ends well.

    Leave a comment:


  • Corzhens
    replied
    Re: discussion outsourcing

    I agree with the new technology. When the call center is a new thing in the Philippines, we do not know anything about the network system of the call center's phone. But now we already have technicians working on those network. Technology transfer is one good by product of outsourcing since the host brings in new technology for the people of the outsourced country to learn. And aside from the high salary that the host company pays the outsourced employees, the learning it gives the employees are good by products too.

    Leave a comment:


  • King Raed
    replied
    Re: discussion outsourcing

    Outsourcing provides many benefit for the company.

    1-The company will have a clear focus to its core competency.

    2- Demand uncertainty will be transferred to the 3rd party provider, The provider has better equipped to manage demand uncertainty.

    3- Access to new technologies as the provider is more likely to have the latest and most effective resources for carrying out that activity.

    4- The 3rd party provider technical expertise may enable the company to accelerate development time for new products.

    However , before we decide to outsource any task , we should do analysis such as (make or buy cost analysis) and ( Make or buy decision). Factors to consider in the decision include cost, capacity, skill requirements, volume and timing.

    Leave a comment:


  • Norm
    replied
    Re: discussion outsourcing

    I think it mostly boils down to financial, logistical, or legal reasons. Most of the time, people favor companies outside their own locality because it is cheaper, but sometimes, they do it because it's closer to where they need to get to, or that place's laws prove to be more advantageous for that part of the business. I think more often than not it's just mostly due to financial reasons though.

    Leave a comment:


  • Corzhens
    replied
    Re: discussion outsourcing

    @Corton, I agree with @nytegeek that we are now in the age of globalization so global participation is just okay. Outsourcing will not be popular if it has too many downsides. The main consideration in outsourcing is not just the cost but the capability. Take for instance the call center, if your country cannot handle customers who are English speaking then you just outsource the communication line instead of training your own people for the English language. So it's more of the skill and not really for the lower wages.

    Leave a comment:


  • nytegeek
    replied
    Re: discussion outsourcing

    A global economy requires global participation. Outsourcing can be painful for the people that need to retrain or search for new employment but it can also open up new opportunities and level the corporate playing field a bit in regards to being competitive and profitable.

    Leave a comment:


  • Corton
    replied
    Re: discussion outsourcing

    I'm very much against outsourcing for the most part, especially if outsourcing to companies located in foreign countries. I understand how it can dramatically reduce costs for businesses but the downside far outweighs the benefits in my opinion. The main problem is the lack of control, having an overseas company with people you've never met working for you without you being able to monitor the work system/processes is not necessarily a good thing. In some sectors it's ok to outsource, for example programming, writing because the tasks are simple and clearly defined.

    Leave a comment:


  • Corzhens
    replied
    Re: discussion outsourcing

    @fairplay007, the cost savings is the primary reason of our boss on the outsourcing scheme. The first point is the benefits that a permanent employee is given, i.e. from paid sick and vacation leaves to medical and other benefits like housing. With an outsourced staff, the higher pay (vis-a-vis the permanent employee) is justifiable in the long run. Besides, when the outsource is good, we can always offer permanent employement.

    Leave a comment:


  • fairplay007
    replied
    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.

    Leave a comment:

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