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“Present two arguments for and two arguments against a U.S. company offshoring the management of its customer relationships to technical and managerial personnel in a less-developed country.”
Offshoring or offshore outsourcing is the practice of a company or a firm hiring or contracting in utilizing the services, skills or labor of the personnel from an outsourcing service provider that specializes in the need that they are looking for such as develop systems, customer service or even write code either from a developing or under developed countries, in their efforts to lower their operational costs and improve their service efficiencies and quality of their products. The former company is called ‘the Outsourcer or the Client’ who pays the money for the services obtained and the later company is called ‘the Outsourcee’ for providing the services to the outsourcer.
Arguments For:
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Thus, the improving the efficiencies in customer relationship management operations outsourced and facilitating the better management of customer information enabling improved customer satisfaction and improving the quality of customer relationships is highly essential and critical for the firm success. Increased quality and efficiencies in customer relationship management process, services are huge benefits that companies can derive from outsourcing. Offshoring the management of customer relationships not only enable business growth but also lowers operational expenses and associated labor costs contributing towards the financial savings of the company. The biggest benefit of outsourcing is that it comes at a contracted price and a predictable cost because the outsourcer or the client can utilize the best talent and expertise in a highly specialized area of the outsourcing service provider while need not bother to carry them on the firm’s
But First, Training Foreign Replacements” reveal the importance of the article to an international marketer. Outsourcing and offshoring prove to be the few topics one can learn in this article. An international marketer gains a better understanding of outsourcing and offshoring by recognizing the effects on the company, business, and economy. An important aspect of an international marketer’s career is to assess the market from a global perspective. An international marketer needs to know whether a company is outsourcing it’s employees incase they do not and need to market and appeal to potential employees for the company. An international marketer needs to understand the effects and how the topics outsourcing and offshoring work to gain a better grasp the company or business as a
Before making judgments regarding the righteousness of offshoring from different perspectives, its impact on stakeholders must first be evaluated. Stakeholders and why it is an issue The very existence of offshoring is in and of itself evidence that, at least in most cases, it is advantageous for firms to engage in offshoring. However, as is the case with most business activities, its externalities can affect various stakeholder groups in both positive and negative ways. In society’s view, stakeholders to consider are Canadian workers, Canadian consumers, competitors, shareholders and executives, citizens of other countries, and future generations. The primary stakeholder, and perhaps the most vocal of all stakeholder groups, is the Canadian labor force.
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).
Canadian companies are beginning to outsource more and more jobs outside of our borders to foreign countries. Outsourcing out of the country comes with a lot of benefits and risks for both the companies and the economy. There are a multitude of different jobs and services that can be outsourced; a few of the main ones include IT services, technical and customer support services, manufacturing, and legal services. Even though outsourcing saves companies a lot of money and makes it easier to keep your business running, it still poses a very large treat to our economy since it leaves Canadian citizens out of the job and instead gives them away to foreigners. Even with this problem however, I still strongly believe that outsourcing to other countries outside of Canada is a wise business decision and should be allowed to continue. I will demonstrate this belief by contrasting the advantages and disadvantages of outsourcing outside of Canada.
Kibbe, C. (2004, 07 09). Outsourcing: the good, the bad and the inevitable. New Hampshire Business Review, pp. 1A-21A.
Outsourcing financial services is a risk that can endure expensive losses. A company can easily lose control of operations and lead itself away from its goals. Loss of controls on company activities and services can occur without proper coordination and communication. Financial firms that outsource their activities must have trust in their third party. The third party should be aware of what needs to be accomplished, and in what period of time. Without coordination, a company loses valuable time and money. A firm should clearly establish objectives and communicate constantly with its outsourced entity, to ensure operations and services are carried out successfully. For most firms, outsourcing is a cost saving strategy that can minimize operational
The next competitive advantage is quality of service. Outsourced environment is quite different than that of the environment in an enterprise. Advertisers are different economic entity with profits at risk. External service provider will make every effort to deliver good quality; good service and everything will apply and will be tested. For example, the usage of the ITIL methodology. Service providers will also provide high output, and perform better output, needs, and change control. Thr...
Outsourcing has been around for many years. In this paper, I will discuss some of the history of outsourcing, the good things about outsourcing, and the bad things about outsourcing. Outsourcing is important because many companies rely on it in order to get many different products and services to their facility on time and in good shape. Outsourcing is a huge part of the business industry today. Any business can be affected by outsourcing.
Lewin, A. Y. & Peeters, C. (2006). The top line allure of offshoring. Harvard Business Review, 22, 24. Retrieved May 19, 2006, from EBSCOhost database.
Outsourcing is a term defined as the movement of jobs elsewhere to another company that can perform the same tasks, even though there is the potential of doing the jobs inside the company itself. An example of outsourcing is currently being done at your company, where contractors, usually part of their own contracting company, are performing the duties the old employees used to do. Another example of outsourcing can be moving jobs overseas, such as to developing nations, where cheap labour is readily available and the laws are much less restrictive. In both of these circumstances, the aim of outsourcing is to provide a cheaper alternative for the company, while improving its efficiency. Though there is usually deep public backlash from workers right over Australia, when jobs are being sent overseas.
In this position paper I would like to express my opinion offshoring and why I think that offshoring is a good thing for businesses to expand and reach greater earning potential by going global. First take look at your business large or small. Are you a successful company that profits from manufacturing goods and/or providing services nationwide, but over the last few years you have noticed a steady bottom line with no significant increases in your revenue? You end up asking questions such as, “Why is the next company much more profitable than I and what can we do differently to improve profits?” Through research and strategizing you may determine that the answer is as simple as taking your business to the nex...
...ing is the processes of the company to other companies that are situated in a foreign country, and most likely have a different language and culture. Offshore outsourcing has benefits such as higher cost savings and access to highly skilled labor.
Sometimes, the cost of the driving factors in customer relationship management systems outsourcing does not become a seller's reputation. In these scenarios, it is possible that the CRM service provider can disappear overnight, along with all official documents. It is also possible that the information remain with the service provider may have to get used for other purposes
A disciplined approach to management eying leading employees, improving the management team and building the business strategy. Instead of treating each problem as a one off. They design systems and structures that make it easier to handle in the future. (Techrepublic, 2015) 2.2. Risk of exposing confidential data: When an organization outsources HR, Payroll and Recruitment services, it involves a risk if exposing confidential company information to a third-party Synchronizing the deliverables: Some of the common problem areas include stretched delivery time frames, sub-standard quality output and inappropriate categorization of responsibilities. At times it is easier to regulate these factors inside an organization rather than with an outsourced partner Hidden costs: Although outsourcing most of the times is cost-effective at times the hidden costs involved in signing a contract while signing a contract across international boundaries may pose a serious threat Lack of customer focus: An outsourced vendor may be catering to the expertise-needs of multiple company at a time. In such situations vendors may lack complete focus on your organization 's tasks. 2.3. 1.Know the