Outsourcing is the process of transferring
work that needs to be done by the company to another external parties rather
than doing the work internally (Schienerjans, 2005,p3).Any part of a business
activity can be outsourced. It’s the delegation of noncore operation or jobs
from internal production to an eternal entity.
Outsourcing can result in an organisation
quickly earn benefits through expertise and enhanced control from an external
entity. . In reality organisation that
embrace outsourcing and leverage their resource to focus on the core of their
business are known to be the market leaders of tomorrow. This is because the
relevance of outsourcing it said that it exist high opportunity of cost saving
for an organisation thus this increase the chances of success for an
organisation.
According to outsourcing institutes 30% of
the organisation is engaged in some form of outsourcing including the federal
Government.
Taking the federal Government as an example
of the outsourcing process the agency
core business is governing however its information technology is also an
important part that needs to be carefully done
however the organisation is not
present to do that which is why the federal agency use outsourcing their
information technology in order to save time to focus on house resources and
core function to improve quality of information and to increase flexibility.
The federal government stated:”Successful
outsourcing enables organisation to focus on what they do best and accomplish
their mission”.
Another example could also be DELL
computers, the company produces their own product but they sometimes buy some
of their computers from another manufacturer in order to save production cost.
References
Burkholder.N ( 2008) “ Outsourcing the definitive view
application and implication “ 10th edition ‘ John Wiley& Sons’.
Schiederjan.A , Schiederjan.D, Schierdjan.A
( 2007) “ Outsourcing Management information system” Ideal Group Publishing .
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