why many companies outsource the services which are connected withtheir products tightly and naturally?
449192
Some companies think it will save them money (although rarely are all the costs including opportunity costs considered) some companies do so because they do not have the necessary resources in house
414299
Business Process Outsourcing (BPO) is the leveraging of technology or specialist process vendors to provide and manage an organisation's critical and/or non-critical enterprise processes and applications. The most common examples of BPO are call centres, human resources, accounting and payroll outsourcing. Business process outsourcing may involve the use of off-shore resources.\n\nBPO (business process outsourcing), the increasing trend of relocating entire business functions to either self-owned or third-party service providers, typically in low-cost locations.\n\nUse of a BPO as opposed to an application service provider (ASP) usually also means that a certain amount of risk is transferred to the company that is running the process elements on behalf of the outsourcer. BPO includes the software, the process management, and the people to operate the service, while a typical ASP model includes only the provision of access to functionalities and features provided or 'served up' through the use of software, usually via web browser to the customer.\n\nOut·sourc·ing in Technology\n\nThe procuring of services or products, such as the parts used in manufacturing a motor vehicle, from an outside supplier or manufacturer in order to cut costs.\n\nContracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. In the U.S. in 2003, the term took on extra meaning, often referring to jobs being given to people in companies located in India and other countries. See netsourcing, ASP, SSP and facilities management. \n\nOutsourcing in Investment\n\nA practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally.\n\n\nInvestopedia Says:Outsourcing is an effective cost-saving strategy when used properly. It is sometimes more affordable to purchase a good from companies with comparative advantages than it is to produce the good internally. An example of a manufacturing company outsourcing would be Dell buying some of its computer components from another manufacturer in order to save on production costs. Alternatively, businesses may decided to outsource book-keeping duties to independent accounting firms, as it may be cheaper than retaining an in-house accountant.\n\n\n-----\n\nOutsourcing (or contracting out) is often defined as the delegation of non-core operations or jobs from internal production within a business to an external entity (such as a subcontractor) that specializes in that operation. Outsourcing is a business decision that is often made to lower costs or focus on core competences. A related term, offshoring, means transferring work to another country, typically overseas. Offshoring is similar to outsourcing when companies hire overseas subcontractors, but differs when companies transfer work to the same company in another country. Outsourcing became a popular buzzword in business and management in the 1990s. EDS was the first company to establish the outsourcing business.\n\nOverview\n\nOutsourcing is defined as the management and/or day-to-day execution of an entire business function by a third party service provider.\n\nOutsourcing and/or out-tasking involve transferring a significant amount of management control to the supplier. Buying products from another entity is not outsourcing or out-tasking, but merely a vendor relationship. Likewise, buying services from a provider is not necessarily outsourcing or out-tasking. Outsourcing always involves a considerable degree of two-way information exchange, co-ordination, and trust.\n\nOrganizations that deliver such services feel that outsourcing requires the turning over of management responsibility for running a segment of business. In theory, this business segment should not be mission-critical, but practice often dictates otherwise. Many companies look to employ expert organizations in the areas targeted for
663550
Well it is like this. Take Simpson Strongtie manufacturing. They take in rolls of steel and they cut them up into small pieces of steel and stamp them out to make things like rafter connectors deck connectors and well quite a few different types of metal fasteners. They take a commodity in and then make it into a usable commodity for the consumer like me and you. That's Turnkey. One commodity that is sold to manufacture another which is sold to companies like Lowes or Homedepot and consumed by consumers and end users where a profit is made by the middle man which in this case was Homedepot and Lowes.
841952
Greed is the reason for most outsourcing.  Most outsourcing companies have three levels of personnel.  The first level is proficient in English and can sound "American" on the phone.  This is used to lure in the US companies.  The second and third levels are progressively worse.  (they are put into place after a long term contract is in place).\n\nIf you think I am lying, compare BofA's phone support now verses a year ago.  It is obvious that you are talking to someone in Bangalore.  A year ago you could swear you were talking to a US born citizen.
4085
Outsourcing is nothing new... the term might be but it's been going on forever. \n\nIn colonial America, Cotton producers sent their raw cotton to the UK to make the clothes that were then shipped back to the US since it was much cheaper to manufacture it in the UK.  \n\n... and I guess slavery could be called INsourcing!  instead of sending the production to the poor country, they went and brought the cheap labour in the country!
347120
Yeah, if you're still around to ask this question, there's a good chance that either \na) They outsourced to Chinese or Indian assasins that just aren't up for the job\nb) You AREN'T being tailed\nor\nc) Better question you're mom, sometimes they do their jobs from the inside.
1001829
I can say that I am mad about the outsourcing of jobs and the dependence on foreign items, but I cannot answer the question based on facts. My opinion is that we're being outsourced because its cheaper to produce things outside the US. Our dependence for foreign items comes with the outsourcing of jobs and perhaps that we can't preoduce itmes for ourselves fast enough that we look for outside items. I would like the politicians who benefit or support outsourcing to be ousted from Congress.
227035
Outsourcing is really about just finding the best value for your money. If someone is willing to give you the same product or service at a lower price, that's a good thing. That means you are free to do something much more productive with your time and money. In any case, there are many jobs that cannot be outsourced, so if you are concerned about job security, get one of those jobs.
1108881
Well, due to tough competetions, all are more or less, the same.\nBut before you buy connection of any company, make sure you evaluate them on their customer service and quality.
593005
Yes, in the designing stage at least.  Sometimes they are outsourced, but often they are on site.  This is especially true with the newer Pyrex glass type toys.
134697
Well, if you are producing something, you often flood the market, devaluing your own product. Also, staffing can become difficult in some areas, especially if you don't outsource jobs, etc. It makes management much more complex. Also, workers may unionize, which is a NIGHTMARE.
641653
Technology can help outsourcing because no longer does the outsourced company have to be physically located nearby. This has caused a global marketplace where the workers can be in another country.\n\nTechnology has accelerated this through the use of email, ftp, Internet, WWW etc. For instance, the USA is outsourcing a lot of its software construction (and sometimes design) to countries like India who are becoming very talented in software, but work at a fraction of the price of American programmers/designers.\n\nA company can create a product idea, send it to another country to be created, control its creation through email or Internet conferencing and get the results back at lightning speed.\n\nHope that helps. I have included a link to one such outsourcing company in India where they talk about the advantages of outsourcing with them. Enjoy!
715114
If you want to be a successful and profitable company, outsourcing will be inevitable.
367617
Sort of.  There are benefits to outsourcing if the firm is particularly specialized in that and it's not a big deal to outsource this particular service.  An example of this could be payroll, where there are these monster payroll companies, such as PayChex that handle payroll for companies because payroll is an easy service to outside and this process shows how the division of labor has worked well.\n\nThere are other things in a business that you don't really want to outsource because you may be dealing with proprietary things that you don't want people to know about and it's a core part of the business.\n\nThese days with software companies and also things like call centers, we're not really seeing benefits from division of labor.  It's more than the average wage per capita varies per country.  So workers in other countries provide cheap labor and that's the reason for the outsourcing.  Often times, the foreign labor may not do as well of a job as a domestic worker, but it's worth it because the company saves money.
181155
operations can deal with a customer and make sure complaint are followed up, company gudilines are being followed, and that all employees are trained well enough to handle those issues with customers. \n\nOperations also makes sure that customers get orders on time.
89944
Yes:\ncompanies pay less, which in turn makes for cheaper services, and higher profits for innovation and more technical jobs.\n\nNo:\ncompanies are greedy and make you pay the same. They see the outsourcing as just a way to boost profit rather than provide cheaper services. The money stays among the top 1%
29137
The general concept of outsourcing is having other firms do the work of a particular internal company functions.  Good example of that are the federal government agencies that looks for contractors to perform specific tasks.  An example is the company Lockheed Martin where they have a billion dollar contract with the Department of Defense to design and manufacture the F-22 Raptor.  \n\nOutsourcing can help a certain organization to save a little in terms of paying their own employess, and give other firms (usually start-up firms) an opportunity to take the work, which could give opportunities to potential to work in a different firm and perform the same duties.\n\nHowever, outsourcing can be a negative as well, a good example are call-centers owned by American firms.  Due to the labor costs in the United States being expensive, these firms reach-out or venture their business overseas where in most likelihood labor is cheaper.  Since call-center operators doesn't need to perform their business face-to-face with their customer, they don't need to travel to the United States to work.  This result to a lower cost in labor.  This sets gains in the part of the company but not to the average worker, which will lead to a higher unemployment turn-out.