Outsourcing Case Study

Centralization The current trends in emerging markets have led companies to centralize production of imperative product parts. Although outsourcing may have been beneficial in the past, bring production “close to home,” allows companies to have more control over the production process. More control over the processes translates to more control over the product. Customers demand higher quality at a lower price, so companies have to do whatever is necessary to compete. During the outsourcing processes, it is important that the management of the parent company appropriately retain the necessary information for production. Pertinent information about the structure, strategy, and skill needed to complete outsourced task could be loss if management

Hiring workers in foreign countries can allow your company to work around the clock, because workers are in different time zones. Also workers in other countries maybe more proficient with technical and service skills and improve overall performance. Outsourcing can eliminate investments in capital, such as computer equipment and office space. The money saved can be used to invest in day-to-day operations. Small businesses have limited resources. In order to increase efficiency, these small businesses can use outsourcing to complete task. For example, a small accounting office can outsource services like reception, bookkeeping, and data storage. By outsourcing tasks, the owner and employees can focus on creating new sales, completing pertinent assignments, and servicing demanding clients.

Management

Nearly half of companies that participated in offshoring did not receive a financial benefit (Aron, 2005). The other half have been able to penetrate foreign markets and create global sustainability. Companies like Apple have created tremendous value for their shareholders, while companies like General Motors now sell more products internationally than at home. Economic growth is inevitable. For the US to continue to participate and remain a major power, alliances aboard must be created and maintained. Outsourcing and offshoring play a major part in developing these lasting international relationships. In the midst of a politic battle never seen before, presidential candidates Donald Trump and Hillary Clinton speak about the future of the country and the relationships with foreign countries. Regardless of the winner, the US economy truly depends on the exporting and importing of