To help an organization make outsourcing decision, it should ask the following questions; after outsourcing, will the company be free to concentrate on its core activity? Will the company’s efficiency be achieved when the organization outsources? Will outsourcing help the company gain a competitive position? Among other strategic concerns (Crown 2011).
Outsourcing takes place in different firms and the most common include, outsourcing of information technology (ITO), outsourcing of business processes (BPO), which encompasses outsourcing of human resource (HRO). ITO is where a business firm outsources services of computer technology from a third party company. BPO encompasses HRO which relates to outsourcing of customer care call centers services from a third party instead of doing it on its own.
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MDF Systems, 2004. 32 Benefits of Outsourcing.
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Onwards Vortex Centrum Limited and Group companies, 2011. Outsourcing: Qantas in seven
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Qantas Airways Limited, 2011. Our Company. Retrieved from:
QuinStreet Inc., 2011. IBM Puts Qantas' IT Business in its Pouch.
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Sourcingmag.com, 2011. Outsourcing - What is Outsourcing?
Retrieved from: http://www.sourcingmag.com/content/what_is_outsourcing.asp
UBM TechWeb, 2011. Airline Taps IBM for Flexible Pricing Deal.
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