Outsourcing Case Study

Introduction

Outsourcing is a strategy that an organization uses to transfer parts of work to outside suppliers rather than completing it in-house. It is a cost-saving means to improve the quality of services, as well as to raise revenue for an organization. Outside suppliers will take the responsibility of conducting the program and maintaining the organization’s assets when the work is outsourced to them. The outcome of outsourcing mainly depends on the vendor’s ability to create value for both parties under a contract. Outsourcing success relates to the level of quality of services by suppliers as well as the attainment of financial and technological benefits for organizations.

A growing trend of outsourcing in services include Information

Once an organization fails to realize the influences that outsourcing would have on the process and their people, they might just simply move their failed outsourcing to another contractor. Yet they repeat their mistakes and might lead to a back-sourcing stage that brings the work back in-house. Therefore, a brief understanding in how to avoid making the above errors is necessary in an outsourcing

Through outsourcing, the operating costs are expected to reduce for the availability of cheaper labor provided by a vendor. Also, the expert-labor brought by the vendor make up the lack of expertise while a project is conducted in-house. In this manner, the time-consuming would be less than that of in-house as well. With more available budget and time, the organization is able to improve its focus on other core issues. Outsourcing also implies the organization is offered the access to internal resources from its partner company. Moreover, the organization shares risks with another partner company once an outsourcing contract is built. Therefore, the risks will be minimized for both parties compared with conducting the project