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Outsourcing: good or evil
Outsourcing: good or evil
Outsourcing: good or evil
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FDI is a short form of Foreign Direct Investment which is refers to an investment made to acquire lasting or long-term interest in enterprises operating outside of the economy of the investor. The investment is direct because the investor, which could be a foreign person, company or group of entities, is seeking to control, manage, or have significant influence over the foreign enterprise.
As everyone knows, that Outsourcing is an arrangement in which one company provide services for another company that missing or don’t have a specialty on certain area of expertise. Outsourcing is a trend that is becoming more common on information technology and other industries for services that have usually been regarded as intrinsic to managing a business.
Nowadays, Outsourcing is the famous and important things in business. Outsourcing also to describe in practice of handling over the control of the public services for profit organization. With outsourcing, all the task that company must do, company will give the project to another company to do the project. Outsourcing is good strategy to finish the task that the company can’t do, outsource is to avoid losses of cost. There a reason why companies like to outsource the project, which are too avoided of regulation, high tax, cost of energy, in other word are to avoid taxes for government. With the reduce of costs, management sees the opportunity for short run of the profits, meanwhile the income increase of the consumer based are strained. Beside the benefit of the outsourcing, there are some of disadvantage in outsourcing which are the risk of exposing the confidential data.
Although outsourcings most of the times are for cost effective or in other words are cost saving...
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...t: http://www.oecd.org/mena/investment/35275189.pdf [Accessed 4 March 2014].
2. OECD Publication. 2002. Foreign Direct Investment for Development. Available at: http://www.oecd.org/investment/investmentfordevelopment/1959815.pdf [Accessed 4 March 2014].
3. Barry Kolodkin. 2014. US Foreign Policy. Available at: http://usforeignpolicy.about.com/od/introtoforeignpolicy/a/what-is-FDI.htm [Accessed 5 March 2014].
4. Dirk Willem te Velde. 2001. OECD Development Centre. Available at: http://www.oecd.org/dev/2698620.pdf [Accessed 5 March 2014].
5. Vienna. 2009. United Nation Industrial Development Organization. Available at: http://www.unido.org//fileadmin/user_media/Publications/Research_and_statistics/Branch_publications/Research_and_Policy/Files/Working_Papers/2009/WP%2001%20FDI%20Policy%20Instruments%20-%20Advantages%20and%20Disadvantages.pdf [Accessed 6 March 2014].
Outsourcing simply means acquiring services from an external organization instead of using internal resources (Butler, 2000). By using outsourced resources, organizations can gain a competitive advantage by utilizing contingent staff to accomplish strategic goals without incurring the fixed overhead. By focusing on the leading edge and highly specialized skill sets, outsourcing providers can often offer higher quality services, or at a lower price than the client organization. Typical reasons for outsourcing go beyond simple contingent staffing. Outsourcing providers are able to maintain economies of scale with regard to specialization (...
Outsourcing is a technique for companies to reassign specific responsibilities to external entities. There are several motivations for outsourcing including organizational, improvement, cost, and revenue advantages (Ghodeswar & Vaidyanathan, 2008).
I found this article "Foreign direct investment: Companies rush in with the cash" on the financial times website (www.FT.com) published December 11, 2002 written by John Thornhill. The reason for choosing this article is my personal interest in the Chinese economy and its attractiveness to the foreign investors. Apart from the foreign direct investment this topic has also helped me in understanding the impact of Chinese economy on the global market.
Flow of money for the purpose of investments from one country to another country is called as Foreign Direct Investments. It is an investment made by a company based in one country for long lasting interest or controlling stake into a company in a foreign country. The nature of FDI could be either be inward or outward. Inward FDI refers to direct investments flowing into the home country from foreign land, and outward FDI refers to home country making direct investments in foreign land. The difference between inward FDI and outward FDI is net FDI inflow. Net FDI inflow could be either positive or negative based on the investments flowing between countries.
Outsourcing is to obtain (as some goods or services needed by a business or organization) under contract with an outside supplier. (Merriam Webster) Some of the time an organization can not handle all aspects of a business process internally. The advantages of outsourcing is allowing companies to have lower operational and labor costs, faster production, and allowing companies to focus on core activities.
We can define that outsourcing is a practice that having a done certain job functions outside a company instead of having an in-house department or employee handle it. We can outsource it either to expert company or an individual. We must use a strategic solution to less the impact on stability of finance and company growth.
...urcing services, the company operation will be became a mess. This is because one organization can’t run a lot of task or project at one time. Therefore an organization need outsourcing in the way to help their organization run smoothly.
Finally, as outsourcing is one of the highly accepted ways for cost reduction, performance improvement and to examine on basic elements of business, there are also possibilities of failures by those who take initiatives in outsourcing strategy due to some factors and effect badly the management’s expectations.
The word "outsourcing" were introduced in the mid 80s. However, the hiring idea someone else that to do specific jobs or dividing labour has existed for hundreds of years. In the business era, outsourcing can be found in every place or...
Competitive advantage of an organization is aims to promote a more profits from competition. Achieved through many avenues include produce a quality product or a good service in the market. Competitive advantage helps the company maintain a good position in the long time and improve the quality of products as the company's image in the developed market potential. Outsourcing is an arrangement in terms of services provided to other companies or prepared at home. It is a trend that is becoming in information technology, is considered as the intrinsic to manage the business of the company. Available for contract and most of the companies managed by outsourcing such as business analysis in criticism by people outside the company.
It is direct investment into production or business in a country by a company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country. It means that when a country invest the money in the other country for the purpose of business or to earn more.
Foreign Direct Investment (FDI) measures the investment activities of MNCs, and it can be formally defined as "ownership of assets in one country by residents of another for purposes of controlling the use of those assets".
There are certain present conditions that lead to a strong positive impact of FDI upon economic growth. Two studies can be referred in this instance; Alfaro et al. (2003) in their research describe that for FDI to have major impact upon the economic growth of the host country, if the financial markets in the host country well developed. Countries that have well developed financial markets gain more from inflow of FDI than countries with weak financial
Nowadays, outsourcing is a viable expense sparing technique when used legitimately. It is now and again more affordable to buy an exceptional from organizations with comparative advantage than it is to prepare the great inside. As example of an assembling organization outsourcing might be Dell purchasing some of its components from an alternate producer to spare on handling expenses. Then again, organizations might choose to outsource book keeping duties to autonomous bookkeeping firms, as it may be cheaper than holding an in-house accountant.
FDI is known as foreign direct investment and it’s meant to make an investment in the other location in a foreign country. In this article, the foreign direct investment theories is mainly concern the three theories which are market imperfections theory, international production theory and the internalization theory.