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Thread: discussion outsourcing

  1. #11
    Forum Founder & Owner TopLink's Avatar
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    Default Re: discussion outsourcing

    Quote 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

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  2. #12
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    Default Re: discussion outsourcing

    Quote 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.

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    Default Re: discussion outsourcing

    Quote 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

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    Default 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.

  5. #15
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    Default Re: discussion outsourcing

    Quote 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.

  6. #16
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    Default Re: discussion outsourcing

    Quote 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

  7. #17
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    Default 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.

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    Default 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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    Default 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

  10. #20
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    Default 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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