Free Essay

Outsourcing

In:

Submitted By ParsifalSA
Words 3067
Pages 13
UNIVERZITET U SARAJEVU
EKONOMSKI FAKULTET U SARAJEVU
VISOKA POSLOVNA ŠKOLA – DL STUDIJ

Seminarski rad iz predmeta Osnove organizacije na temu:

Uticaj organizacionog izdvajanja (outsourcing-a) na efikasnost organizacije

SADRŽAJ

1. UVOD 2
2. POJAM OUTSOURCINGA 3
3. RAZLOZI KORIŠTENJA OUTSOURCINGA 4 3.1. Coaseov zakon 5
4. PREDNOSTI I NEDOSTATCI OUTSOURCINGA 5
5. PRIMJERI OUTSOURCINGA 6 5.1. Indija – magnet za američke kompanije 6 5.2. Outsourcing u BiH 9
6. BACKSOURCING 10
7. ZAKLJUČAK 11
8. LITERATURA 12

1. UVOD

Outsourcing, kao vrsta poslovnog procesa, je zastupljen kod većine uspješnih multinacionalnih kompanija, koje su nastojale pravilnom poslovnom politikom odgovarati na sve veće zahtjeve tržišta i postići poslovni uspjeh u nemilosrdnom konkurentskom okruženju. Kao rezultat globalizacije, multinacionalne kompanije su prve počele koristiti razlike u cijenama širom svijeta i to na način da sele proizvodnju u države s jeftinom radnom snagom, istraživanje i razvoj u zemlje koje ih finansijski podstiču, prodaju i marketing u zemlje visokog standarda, a centre uprave u tzv. poreske „rajeve“.
Ovo je ujedno i suština outsourcing poslovnog procesa koji podrazumijeva prepuštanje dijela poslovnih aktivnosti, koje nisu od suštinske važnosti vanjskom partneru, odnosno dobavljaču, o čemu detaljnije govorimo u prvom dijelu rada.

Svjedoci smo enormnog rasta IT industrije i kompleksnosti informacionih sistema, bez kojih je u savremenim uslovima poslovanje nezamislivo. Outsourcing je u ovom slučaju idealno rješenje, što pokazuju i podaci da se najčešće korištene usluge ovog tipa upravo odnose na segment IT.

U idućem dijelu rada govorimo o motivima organizacije, preciznije o pozitivnim i negativnim stranama ovog poslovnog procesa. Organizacija se sve više suočavaju sa dilemom da li povjeriti neke poslovne dužnosti drugom ili ne, što nije nimalo jednostavna odluka. Svaka organizacija je individua za sebe, pa ono što jednoj predstavlja objektivno rješenje, za drugu može rezultirati nepovratnim gubitkom.

Temu smo upotpunili konkretnim primjerima vezanim za najuspješnije svjetske kompanije kao što su Apple, Dell, Microsoft, IBM i mnoge druge, koje su proširile svoje poslovanje u Indiji upravo koristeći outsorcing. Inelektualni kapital Indije je osnovni izvor koji crpe američke kompanije u ovom slučaju, u nastojanju postizanja vrhunskih rezultata i maksimalne fleksibilnosti u odgovaranju na izazove tržišta.

Na kraju rada govorimo o backsourcingu, kao obrnutom procesu outsourcinga, koji ne mora neminovno biti rezultat određenih sukoba i neslaganja među ugovornim partnerima, već može biti rerzultat nove poslovne filozofije organizacije.

2. POJAM OUTSOURCINGA

E-poslovanje omogućava da se sa lakoćom prevaziđu granice koje su tradicionalno definisale poslovnu organizaciju, pa čak i do toga da sam pojam granice postane besmislen. Prvi koraci u tom pravcu odnosili su se na čvršće povezivanje i rušenje barijera za poslovne partnere. Kao rezultat toga, veliki broj kompanija počinje koristiti outsourcing u svom poslovanju u cilju odgovora nadolazećoj globalizaciji. U još uvijek teškim vremenima recesije, outsourcing je jedna od najaktuelnijih tema i najbrže rastući segment globalnog tržišta. To nije proizvod, odnosno usluga, to je novi oblik poslovnog procesa.

Svaki poslovni proces koji nije od suštinske važnosti za poslovanje, zahvaljujući e-poslovanju postaje ozbiljan kandidat za outsourcing. Razlog je jednostavan – zašto da kupujemo cijelu kravu, ako nam je potrebno samo mlijeko. Poslovni procesi koji ne predstavljaju ključni (core) proces danas se povjeravaju provajderima usluga izvan matične organizacije koji onda vode računa o “kravi” i redovno isporučuju “mlijeko”.

Uvođenje outsourcing-a unosi velike promjene ne samo u poslovanje, već i u poziciju svih učesnika u distribucijskom kanalu. U razvijenim zemljama, ovaj način pružanja usluga preuzeo je ogroman udio u ukupnim IT uslugama. Na primjer, u Finskoj preko 60% IT usluga pruža se na ovaj način.

Postoji više definicija outsourcinga, među kojim izdvajamo sljedeće:

Outsourcing predstavlja prepuštanje dijela poslovnih aktivnosti vanjskom partneru odnosno dobavljaču.
Outsourcing je vodeći svjetski trend pružanja kvalitetnih i boljih usluga sa što manjim unutrašnjim troškovima, te fokusiranje na glavne “core businesses” u okviru kompanija.
Outsourcing predstavlja dugoročan pravni odnos kojim jedno pravno lice povjerava trećem licu upravljanje, podršku i unapređenje dijela ili cijelokupne infrastrukture, funkcije, odnosno poslovnog procesa.
Outsourcing predstavlja proces isključivanja (eksternalizacije) svih aktivnosti i poslova iz organizacije koji nisu od strateškog značenja, što znači da se određeni broj aktivnosti prepušta onima koji će ih obaviti brže, bolje i jeftinije, dok se svi raspoloživi resursi preduzeća usmjeravaju na osnovnu djelatnost.

[pic] Slika 1. Procenat outsourcing-a po tipovima organizacije

3. RAZLOZI KORIŠTENJA OUTSOURCINGA

Prijenos pojedinih poslova na izvršitelje složen je i ozbiljan zadatak, gdje imamo višestruke razloge zbog kojih svaka organizacija treba razmotriti outsourcing kao način rasterećenja poslovnog procesa. Kompanije koje su od početka 90.-tih sudjelovale u procesu outsourcinga kao korisnici usluga ubrajaju se u najveće i vrlo uspješne kompanije, među kojima su Bank of America, J.P. Morgan, Texaco, Microsoft, itd.

Outsourcing IT usluga događa se u svim privrednim sektorima. Kompanije moraju dobro razmotriti u ovisnosti od strateškog značaja i rizika prijenosa ključnih funkcija na vanjsku kompaniju, za koji dio poslovanja je najbolje koristiti outsourcing.

Koncept outsourcinga dobio je na globalnom značaju i popularnosti u posljednih par godina kao odgovor ekonomskoj recesiji. Mnogi su razlozi zašto organizacija poseže za outsourcingom, odnosno privremenom ili trajnom izmještanju sekundarnih poslova kompanijama kojima one predstavljaju primarnu djelatnosti, od kojih su najvažniji:

• smanjenje troškova – angažmani outsourcinga su često troškovno učinkovitiji nego realizacija određenih projekata u vlastitom angažmanu

• nedostatak kvalitetnih stručnih kadrova

• povećanje konkurentnosti - fokus na core business – dok se neko drugi brine o proizvodnji specifičnih dijelova proizvoda, preduzeće slobodne resurse i energiju usmjerava u osnovnu djelatnost

• ubrzanje realizacije projekta – specifične vještine posebno specijalizovanih eksternih izvršitelja brže će dovesti do realizacije poslova

3.1. Coaseov zakon

Ronald Coase, dobitnik Nobelove nagrade za ekonomiju 1991. godine je uočio da će kompanije rasti do nivoa do kojeg se troškovi organizacije dodatne operacije unutar firme izjednačavaju sa troškom kupovine (iznošenja) iste operacije na tržištu.
Ta formulacija, poznata kao Coaseov zakon, objašnjava bit outsourcinga. Kako organizacije rastu, one postaju sve komplikovanije i postaje sve skuplje koordinirati te aktivnosti. Coase je primjetio da uvijek postoje kompanije koje mogu proizvesti određene proizvode i usluge ekonomičnije od promatranih kompanija. Ako se oforme efikasnije kompanije, one će ˝istisnuti˝ one koje su nesposobne adekvatno upravljati resursima. Jedini način da neefikasne kompanije prežive je da izdvoje neefikasne funkcije i da njihovo obavljanje prepuste eksternim dobavljačima.

4. PREDNOSTI I NEDOSTATCI OUTSOURCINGA

Sve više kompanija se nalazi u dilemi da li menadžment opteretiti poslovima sekundarne važnosti ili nekom drugom povjeriti ove dužnosti. I jedna i druga opcija ima i svoje vrline i mane.

Osnovne prednosti outsourcinga su:

1. fokus menadžmenta korisnika na core posao

2. fokus menadžmenta izvršitelja na IT

3. smanjenje ulaganja u kompjutersku opremu

4. smanjenje uloženog kapitala u stalna sredstva

5. bolji koeficijent povrata na uložena sredstva (ROI)

6. rasterećenje od upravljanja složenom funkcijom poput IT podrške

7. struktura zaposlenih izvršitelja usmjerena na IT podršku

8. visoka motivacija izvršitelja u IT poslovnom okruženju

9. dugoročno smanjenje troškova korisnika

10. redovna ulaganja izvršitelja u kompjutersku infrastrukturu

Osnovni nedostaci outsourcinga su:

1. izvršitelj gubi kvalitetne IT stručnjake

2. potencijalni porast troškova razvoja aplikacija

3. nemogućnost prenosa softverskih licenci u vlasništvu korisnika na izvršitelja

4. negativna posljedica globalizacije: outsourcing, odnosno premještanje poslova u zemlje Trećeg svijeta, gdje se isti poslovi rade za mnogo manje novca, jedna je od negativnih posljedica globalizacije. Poznat je primjer da se većina svjetskih tenisica poznatih marki ustvari proizvodi u Kini, a internetizacija svijeta omogućava kompanijama da ˝srežu˝ troškove tako što će im za tastaturama raditi neki Indijac ili Malezijac koji radi za ˝kikiriki˝.

PRIMJERI OUTSOURCINGA

5.1. Indija – magnet za američke kompanije

Indijsko tržište dionica je u proteklih pet godina naraslo za 200% i oborilo sve rekorde rasta zahvaljujući milijardama američkih dolara stranih investicija koje se svakodnevno ulijevaju u indijsku privredu. Zahvaljujući stranim investicijama, najdinamičnija i najbrže rastuća grana privrede u Indiji je IT sektor. Naime, neki od najvećih svjetskih IT kompanija, među kojima prednjače one iz SAD-a, u posljednjih su nekoliko godina investirale milijarde dolara u otvaranje svojih pogona u Indiji. Velike kompanije kao što su: Apple, Dell, LogicaCMG, Microsoft, IBM, Cisco systems i General Electric snažno su prisutne u Indiji i ne samo da u toj zemlji otvaraju nove pogone, već u nju i sele mnoge pogone koji su do sada bili u SAD-u. Sve se to pozitivno odrazilo na sferu zapošljavanja obzirom da je mnogo Indijaca uposleno baš u ovim firmama.

Indija, a posebno pokrajina Bangalore, koju mnogi nazivaju indijskom „Silicijskom dolinom“[1], jer je u njoj smješteno najviše domaćih i stranih IT kompanija, tako je postala glavno odredište outsourcing poslovanja američkih IT kompanija. Postoji mnogo razloga za to, a najviše se ističe kvalitetna, obrazovana i jeftina radna snaga koja govori engleski jezik. Na taj način kompanije žele, uz smanjenje troškova poslovanja koje im donosi preseljenje pogona u Indiju, iskoristiti i indijski ˝bazen˝ talenata, pa osim otvaranja call centara i preseljenja svojih manje važnih odjela, u novije vrijeme u Indiju preseljavaju i svoje odjele za razvoj istraživanja, testiranje softvera i za dizajn. Predviđa se da će outsourcing i izvoz softvera Indiji ove godine donijeti zaradu od oko 20 mlrd $, a 60% tog iznosa doći će od američkih kompanija.

Kao što je već navedeno outsourcing, tj. preseljenje poslovanja u inostranstvo i zapošljavanje tamošnje radne snage postaje sve prisutniji način poslovanja američkih kompanija oko čega se u SAD-u javljaju burne reakcije. Američki konzervativci žestoki su protivnici outsourcinga američkih kompanija. Outsourcing pridonosi izjednačavanju snage američke i privreda zemalja Trećeg svijeta kao što su Indija i Kina. Rezultat toga, po njihovom mišljenju, je da Amerikanci gube svoja radna mjesta i da standard američkog srednjeg sloja sve više opada. Kao način spriječavanja korištenja outsourcinga, oni smatraju da bi trebalo uvesti porez na outsourcing, pa se kompanijama ne bi više isplatilo seliti svoje poslove u Indiju ili Kinu. S druge strane, pristalice outsourcinga smatraju da globalno tržište zahtijeva globalne izvore. Glasnogovornik kompanije Dell koja ima svoj centar tehničke podrške u Bangaleoru ističe kako je taj centar što se tiče zadovoljstva korisnika uslugom najbolji od svih 30 centara koliko ih Dell ima širom svijeta. Pristalice također tvrde da će kompanije ušteđena sredstva od korištenja ovog koncepta investirati u domaću privredu i razvoj domaće tehnologije, a američki radnici neće ostati bez posla, već naprotiv zbog toga će se otvoriti nova radna mjesta u SAD-u koja će zahtijevati obrazovaniju i bolje obučenu radnu snagu nego do sada. Snažnu podršku outsourcingu poslovanja američkih kompanija u Indiji nedavno je dao i američki predsjednik George W. Bush izjavom: ˝SAD neće obeshrabrivati outsourcing, nego će boljim sistemom obrazovanja omogućiti da zaposlenici usvoje sve potrebne vještine koje su im potrebne za obavljanje posla u 21. stoljeću!˝

Voditelj poslovanja američke IT kompanije Keane za globalno tržište, Richard Garnick smatra da ušteda vremena i novca nisu jedini razlog za outsourcinga. Kompanije koje su pod stalnim pritiskom praćenja ubrzanog razvoja tehnologije i sve većih zahtjeva tržišta moraju se, kako bi zadržale konkurentnost na globalnom tržištu okrenuti globalnim izvorima.
[pic]
Slika 2. Outsourcing destinacije

1. IBM – od igle do lokomotive

IBM je razvio outsourcing u ogroman biznis. Prodaja usluga, naročito outsourcing IT danas donosi daleko više prihoda. U okviru globalnih usluga IBM je kreirao ponudu za minimalno, djelimično ili potpuno preuzimanje IT funkcija od klijenata. IBM-ov meni sadrži: tehničku podršku, nadgledanje funkcija sistema, upravljanje sigurnošću informacionog sistema, korisničku administraciju, upravljanje bazama podataka, itd. U zavisnosti od izabranih stavki sa menija vrijednost ugovora osnovne ponude usluga kreće se između 100.000 i 10.000.000 $ za period od 5-10 godina. IBM nudi maksimalno prilagođena rješenja koja potpuno odgovaraju klijentovoj poslovnoj strategiji.

5.1.2. Microsoft

Microsoft planira u toku narednih pet godina u Indiju uložiti oko 1,7 milijardi $, te tamo otvoriti 3000 novih radnih mjesta. Prema Bill Gatesu, većina novca će se potrošiti za razvoj i istraživanje, a ova ulaganja samo pokazuju kakva je Microsoftova strategija za budućnost i na koja područja će se u buduće fokusirati.

5.1.3. Apple

Apple Computer namjerava otvoriti call centar u Bangaloreu, u Indiji, koji je nužan zbog sve većeg obima posla, a u planu imaju i otvaranje još takvih centara i u SAD-u. Kompanija Apple je u posljednjih godinu dana stekla milione novih korisnika, te je gradnja ovog centra u Bangaloreu samo odgovor na sve veći broj korisnika i usluga koje Apple pruža. Gradnjom centra u Indiji neće doći do otkaza radnika u SAD-u, naprotiv, i centri u Sacramentu i Austinu će također rasti.
Call centar u Bangaloreu će na početku zapošljavati oko 1.500 ljudi, a taj broj do kraja slijedeće godine trebao bi porasti na čak 3000 zaposlenika. S obzirom na uspješnost Appleova poslovanja , o čemu govori zarada od 13,93 milijarde dolara na kraju prošle fiskalne godine (porast od 68 % u odnosuna prethodnu godinu), vjerovatno je da ovo nije posljednji ovakav centar koji će ta kompanija otvoriti u skoroj budućnosti.

5.1.4. Wipro – Brillian

Wipro je indijska tehnološka kompanija, koja ima razvojno-istraživački ugovor sa američkom kompanijom Brillian iz Arizone. Kompanija Brillian je specijalizovana za displej tehnologiju. Zadatak Wipro-a, u okviru ovog ugovora, je da pribavi dijelove televizora koji će uz tehnologiju kompanije Brillian dovesti do finalnog proizvoda - televizora. Dijelove za TV Wipro naručuje iz Amerike, Japana, Taiwana i Južne Koreje. Nakon dizajniranja i testiranja, montiranje se proslijeđuje kompanijama Flextronics ili Solectron, ugovornim partnerima. Kupci završnog proizvoda - televizora mogu izvršiti plaćanje kreditnom karticom iz Kuala Lumpura, Malezije. Postprodajne usluge mogu obavljati agenti iz indijskog call centra, čime se taj lanac završava. Na ovaj način kompanija Brillian je koristila outsourcing za proizvodnju svog televizora od strane Flextronica ili Solectrona.

Ukupna svota ulaganja u Indiju penje se na velikih 3,8 mlrd $ pa nije čudo da se na nekim IT stranicama u SAD-u već polako govori o ˝United States of India˝.

5.2. Outsourcing u BiH

U BiH praksa outsourcinga je tek na početku. Ipak, predviđa se ekspanzija outsourcinga s obzirom na sve veći broj kompanija koje obavljaju outsourcing usluge (ponudu), ali i porast tražnje kao posljedice osviještenosti korisnika outsourcing usluga zbog mnogobrojnih prednosti i ušteda koje outsourcing omogućava.

Raspoloživost kapaciteta dobavljača u BiH je puno bolja nego što je općeprihvaćeno mišljenje, što pokazuje da veliki broj kompanija ˝outsourca˝ računovodstvo, pristup internetu, izradu web stranica, a sve je više manjih i srednjih kompanija koje nude operativne usluge u IT-u (od podrške i održavanja do izrade poslovnih aplikacija).

Neki smatraju da bi prepreka outsourcingu u BiH mogla biti činjenica da troškovi u javnom sektoru nemaju toliku ulogu koju imaju u razvijenom kapitalizmu, što se dovodi u kontradikciju sa najvažnijom svrhom outsourcinga, a to je reduciranje troškova.

6. BACKSOURCING

Porast potražnje za outsourcingom paralelan je sa padom ekonomije i suprotno, potreba za backsourcingom pojavljuje se u vrijeme ekonomskog rasta kada organizacije žele preuzeti nadzor nad svojim IT operacijama kako bi iskoristile nove prilike na tržištu.

Backsourcing je proces u kojem organizacija ponovo preuzima odgovornost za funkcije koje su prethodno ˝outsourcane˝ i vraća te funkcije u okvire vlastite organizacije. Ovaj proces ne mora biti samo rezultat sukoba između korisnika i dobavljača. Veliki dio prestanka takvih saradnji uzrokovan je promjenom filozofije kompanije o outsourcingu. Važno je da se i u vrijeme raskida saradnje obje strane drže profesionalnih standarda i da se očuvaju interesi kompanije – korisnika, ali i reputacija davatelja outsourcinga. Prekid ugovora o outsourcingu može naštetiti i korisniku i davatelju usluge. Moguće su poslovne štete u obliku prekida operacija, plaćanja kazni zbog neispunjenih obaveza, ugrožavanja ugleda kompanije i njenih odnosa sa korisnicima, partnerima, uposlenima i ulagačima.

Kod svakog planiranja i dogovaranja outsourcing procesa treba imati u vidu nezaobilazni backsourcing, odnosno raskid poslovne veze koji će se sasvim sigurno prije ili kasnije pojaviti. Zbog toga je kod postavljanja svakog outsourcing procesa itekako važno u obzir uzeti proces backsourcinga kada se za njega ukaže potreba. Najbolji put za uspješni backsourcing jeste razvijanje outsourcing strategije i procesa ugovaranja i upravljanja koji omogućava više opcija za kompaniju koje izlazi iz odnosa sa dobavljačem i ponovo preuzima vlasništvo i odgovornost za svoje operacije. Drugim riječima, treba outsourcati s backsourcingom na umu.

7. ZAKLJUČAK

Kao posljedica sveopšte globalizacije pojavio se outsourcing, odnosno prepuštanje dijela posla vanjskom partneru koji će ga obaviti bolje, brže i jeftinije, dok se svi raspoloživi resursi kompanije usmjeravaju na osnovnu djelatnost.

Osnovni razlog i motiv zašto se kompanije odlučuju za outsourcing jeste smanjenje troškova i fokus na ˝core¨ biznis. Outsourcing je najviše zastupljen u IT sektoru. Među najpopularnijim destinacijama za outsourcing posebno se ističe Indija, koja je postala magnet za vodeće američke IT kompanije: IBM, Microsoft, Dell i Apple.

Mišljenje o outsourcingu je podijeljeno: ▪ Na jednoj strani, žestoki protivnici outsourcinga iz razvijenih zemalja smatraju da outsourcing pridonosi izjednačavanju razvijenih i privrede zemalja Trećeg svijeta. Protivnici iz zemalja u razvoju naglašavaju da radnici iz nerazvijenih zemalja rade iste poslove za mnogo manje novca. ▪ Na drugoj strani, pristalice outsourcinga smatraju da globalno tržište zahtijeva globalne izvore, kao i da dovodi do porasta zaposlenih u zemljama destinacijama outsourcinga.

Primjena outsourcing modela u zemljama Centralne i Istočne Evrope je tek na početku, ali se predviđa njegova ekspanzija u budućnosti.

Kod svakog planiranja i dogovaranja outsourcing projekata organizacija treba imati u vidu backsourcing odnosno raskid poslovne veze koji će sasvim sigurno prije ili kasnije doći na dnevni red.

Organizacije koje su pod stalnim pritiskom praćenja ubrzanog razvoja tehnologije i sve većih zahtjeva tržišta moraju se, kako bi zadržale konkurentnost na globalnom tržištu okrenuti globalnim izvorima. S druge strane, zemlje koje žele postati poželjne destinacije outsourcinga moraju se specijalizovati u onom u čemu su najbolje i na taj način postati konkurentne.

Neki smatraju da globalizacija pomaže otvaranju tržišta ka zemljama u razvoju i stvaranju uslova za jednake mogućnosti za rad u bogatim i siromašnijim zemljama. Za druge, ona je samo način da bogati napune svoje džepove na račun siromašnih. Kako god, svijet se mijenja, a i mi usred njega – pitanje nije da li je to pravedno ili ne, već samo ko će najviše zaraditi na toj činjenici.

“Budimo realni, globalizacija neće nestati, a preživjeti mogu samo oni koji joj se najbrže prilagode.”

8. LITERATURA

1. Internet:

1.1. www.birosoft.hr 1.2. www.biznis.hr 1.3. www.bug.hr 1.4. www.ekonomist.co.yu 1.5. www.iskon.hr 1.6. www.itbusiness.ba 1.7. www.matrica.com.hr 1.8. www.moj-posao.net 1.9. www.oaza 1.10. www.trend.hr 1.11. www.webmajstori.net

-----------------------
[1] Silicijska dolina ili Silicon Valley je jedno od ekonomski najrazvijenijih područja svijeta. Nalazi se u SAD-u, a geografski je dio Sjeverne Kalifornije, tačnije, nalazi se na južnom dijelu zaljeva San Francisco u dolini Santa Clara. Jezgru čini grad San Jose (koji je najveći) te 29 drugih gradova sa svojom okolinom. Naziv je dobila po silicijskom čipu koji je izumljen upravo na tom području.

Similar Documents

Premium Essay

Outsourcing

...Outsourcing is an important part of Globalization. The choice to outsource U.S. jobs should be taken into great consideration as there are many segments into which it effects greatly. Also, outsourcing is a great option for a company who needs a certain project completed who do not have the man power or the money to hire a new employee, companies can outsource based on projects in the U.S.A. or abroad. Often outsourcing is a way to save money, but there can be unexpected costs as well. While it can be both a benefit to a customer it can also be a reason to avoid doing business with a company due to it. The decision to outsource is certainly not one that any organization should enter into lightly. There are many reasons to consider outsourcing to foreign countries. A few of the most significant advantages of outsourcing include the most well-known reason to consider outsourcing is to access cheaper labor. Workers in developing countries are paid far less than workers in developed countries due to the lower cost of living. Often these workers are not unionized as well, which further helps with cost cutting. At the same time outsourcing U.S. jobs to a foreign country can create a detrimental blow to the reputation of a company. In 2002 when T-Mobile was established the television spokesperson was Catherine Zeta Jones, a very classy and beautiful actress. Customer service call centers were based in the United States and there was never an issue that could not be...

Words: 1277 - Pages: 6

Premium Essay

Outsourcing

...DECLARATION I Musubika Narigisi, declare that this Research report is my original work and has never been submitted to any university for examination, where other people’s work has been used, due acknowledgement has been made. Candidate signature............................................. Date................................................. Musubika Narigisi i APPROVAL This Research report complied by Musubika Narigisi has been under my supervision and guidance her work is now ready for submission. Signature................................................ Date.............................................................. MR SSAJJABBI VINCENT ii DEDICATION I dedicate this piece of work to my parents Mr. and Mrs. Kampere Ramadhan and the entire family not forgetting my friends who have helped me during this study I also dedicate it to my dear sister Mrs Lugoloobi Zahirah and her entire family for the great assistance they have given me during my stay at campus and through this study as well. I cannot forget to dedicate it to my sisters, Kampere Fahima, Kampere Madiha, Kampere Afraa and my brothers Kampere Hamuzah and Kampere Adiham. iii ACKNOWLEDGEMENT I wish to extend my sincere appreciation to my supervisor Mr. SSajjabbi Vincent for his guidance and technical advice during the study without him this study would not be a success. I must acknowledge the contribution of all my brothers and sisters plus my friends throughout my stay at the university...

Words: 5146 - Pages: 21

Free Essay

Outsourcing

...Outsourcing: The Government, the People and the Companies Jeffrey W. Coleman Webster University Abstract Making a decision about whether or not to move these activities offshore is a decision of far-reaching consequences. Developing countries have been unable to radically alter their industrial structure due to numerous internal institutional and external technological barriers. Consequently, they have sought global participation through outsourcing activities. This is indeed a break from the traditional self-reliant way of doing business. Outsourcing arrangements are technologically and organizationally complex, and present a variety of challenges to manage effectively. Outsourcing benefits include cost savings, quality improvement, and the ability of the organization to concentrate time and resources on its core business. Outsourcing trends change from year to year, and usually involve changes such as progressive outsourcing, cloud sourcing, mergers between organizations from different parts of the world and protectionism. In this paper we will look at a few of these areas such as the how in recent years the business practice of outsourcing jobs has been considered both a blessing for American business and a concern for the American worker, the amount of outsourcing being done and why, the affect on the economy in the United States, and the role government plays in outsourcing. The paper concludes, however, that the trend is just beginning and how our country...

Words: 4404 - Pages: 18

Premium Essay

Outsourcing

...Emerging Trends: Outsourcing Outsourcing or subcontracting is a process where employers handover routine or peripheral work to outside organizations that specialize and execute functions more efficiently. Outsourcing has advantages and disadvantages. Outsourcing nonessential functions can be cost effective and improve the quality of services. Outsourcing agreements create long-term relationships through contracts between employers and subcontractors by flexible renewable contracts. When companies outsource, they send a small number of permanent employees to oversee a shifting workforce of possible employees. The trend of outsourcing human resources functions such as payroll, training, and recruiting are more common. Human resource outsourcing is an $80 billion industry with a projected growth rate of 33percent. Although outsourcing payroll activities is efficient, there are some downsides to outsourcing human resource functions of training and performance evaluations. Outsourcing Advantages Outsourcing companies provide a better-quality of people who are on the up and up with current human resource practices that pertain to specific human resource tasks and activities. The core mission of outsourcing firms is to specialize in a particular function while providing exceptional services and increasing efficiency. For example, a firm specializing in training employees to use work processing software is likely to train employees when new software upgrades are launched with...

Words: 462 - Pages: 2

Premium Essay

Outsourcing

...Benefits of Outsourcing Outsourcing is understood by many to be a means for an organization to decrease its employee payroll while increasing its production. While this may be true there are a number of other advantages of outsourcing. Outsourcing can also streamline processes, allow for greater team and individual performance, and aid in cutting the costs of products which could lead to raise increases for employees. According to Bucki (2011) there are seven top outsourcing advantages: 1. Focus on Core Activities – outsourcing activities which consume resources (human and financial) will allow refocusing on those business activities that are important without sacrificing quality or service. 2. Cost and Efficiency Savings – the size of the company (i.e. number of employees) is preventing the organization from performing at a consistent and reasonable cost. 3. Reduced Overhead – consider outsourcing those functions which can be easily moved. 4. Operational Control – operations whose costs are running out of control or departments who over time have evolved into uncontrolled and poorly managed areas are prime motivators for outsourcing. It would aid in bringing better management skills to the company. 5. Staffing Flexibility – outsourcing will allow operations that have seasonal or cyclical demands to bring in additional resources when you need them and release them when you’re done. 6. Continuity & Risk Management – periods of high employee...

Words: 2331 - Pages: 10

Premium Essay

Outsourcing

...Outsourcing refers to a company which contracts with another company in order to provide services that might otherwise be performed by its own employees. These jobs are handled by separate companies that specialize in each service. Often, these outsourced employees may be located overseas. To know whether outsourcing is appropriate in a given circumstance, it is important to understand several key concepts. Many professors and experts in the business world have conducted case studies and general research to understand the implications of outsourcing, both positive and negative, and the environment which provides the greatest chances for a successful outsourcing venture. The framework within which a firm must decide whether to outsource or not will often involve a two-stage decision process. First, the business must make its decision and secondly, it must take managerial action to implement the decision. To begin with, a company must identify why outsourcing can be useful in an ideal situation and then evaluate whether their circumstances fit these conditions. Essentially, outsourcing can ideally benefit a company from a financial perspective since the outsourced work can be cheaper in and of itself and secondly because it allows the company to focus on other, perhaps more pressing issues. As important as it is that the company can identify appropriate conditions it is equally necessary to be aware of circumstances which will not provide an appropriate environment to outsource...

Words: 3762 - Pages: 16

Free Essay

Outsourcing

...Outsourcing is affecting the U.S. economy greatly. Outsourcing is taking away jobs from the American people causing a rise in the unemployment rates. Not only is outsourcing taking away jobs, but it is making it harder to find new jobs. Outsourcing is where an American company will send certain jobs or duties to be done in another country. Outsourcing is also the transfer of the management, and also the day by day execution of an entire business function to an external service provider. It is a company’s practice of paying an employee in a small developing country to perform a function or produce a product that could be made by the paying company. Business jobs that are typically outsourced include information technology, human resources, facilities and real estate management, accounting, Customer support and call center functions, like telemarketing, customer services, market research, manufacturing and engineering. Outsourcing has become one of the fastest growing trends in the business world. There are many reasons that a company would elect to use outsourcing. Among them is the fact that it provides an almost immediate opportunity for savings as well as a noted improvement in quality. The main reason why American companies are doing this is to save money. It’s cheaper to have someone form a developing country do the job because a dollar goes a lot further than in the states. One management problem that is causing outsourcing is that companies are looking for ways to cut...

Words: 1943 - Pages: 8

Free Essay

Outsourcing

...TLMT441: Advanced Business Logistics Outsourcing Professor: Stacey Little April 28, 2013 What is outsourcing? Outsourcing is “contracting with another company or person to do a particular function”. It is the act of one company performing the job with another to provides the services which might have otherwise been performed in house by their own employees. HISTORY The history of outsourcing goes way back “ever since people have been performing tasks for employers”, some duties performed off site, according to Jodee Redmond. Outsourcing could be considered started by people in villages when they wasn’t able to produce all the necessary items that they needed to survive in order to get the necessary items they traded and this became the early form of outsourcing. The Industrial Revolution began the way companies did business. A lot of company owners started to outsource some of their services to other companies instead of keeping them in house. Usually when a company outsources their work, they outsource it to a company that is in that same city. BENEFITS OF OUTSOURCING There are many reasons that companies outsource their work to other companies to perform, but the most prominent reason seems to be that tit saves money. Companies that provide the outsourcing have the ability to do the work for a considerably less cost especially if they don’t have to worry about benefits for the workers. The second reason that companies outsource is that it allow the company to...

Words: 570 - Pages: 3

Free Essay

Outsourcing

...Outsourcing – A Global Challenge MBA-700 International Economics Abstract The choice to outsource is a major strategic decision not made lightly by companies in today’s global marketplace. Though it brings probable results of cost reduction, loss of control in your product or the quality of service rendered makes this a decision that should not be taken lightly. Though a concept decades old, outsourcing is a topic that brings out fervor in individuals fighting for or against it. It’s a debate centered on moral, economical, and political aspects, with feelings that intensify during economic downturns because of the This paper will discuss theories of outsourcing, while comparing and contrasting the disadvantages and advantages (SWOT Analysis – see Appendix 1) of a concept that is growing in global business. The paper will conclude, most importantly, with discussions on three outsourcing alternatives and their potential to re-invent the status quo. Introduction The advent of globalization has proven that outsourcing is not a hypothetical situation; it is a major strategic business decision growing in popularity that our American workforce must now face in the decline of our U.S. economy. Some believe that outsourcing has become a serious issue not only for our workforce, but also in our major corporations, and the political arena. Issues such as the security of our nation have become debate topics, with critics arguing that outsourcing has weakened national security...

Words: 4072 - Pages: 17

Free Essay

Outsourcing

...Outsourcing Running a business requires many decisions to be made, one decision is whether a company should perform work internally or outsource job duties. Outsourcing is the technique used by companies to reduce cost by transferring portions of work to third party suppliers as opposed to performing the job internally. Outsourcing can be very beneficial in reducing cost, but there are also issues that surround outsourcing in general. In order to understand the benefits of outsourcing, one needs to fully comprehend the issues involved with outsourcing, the benefits that a company may experience from outsourcing, how to truly determine whether outsourcing a specific job is necessary or beneficial, and how outsourcing is relevant in today’s workplace. First, it is important to understand what outsourcing is. According to Robert Handfield (2006), outsourcing, which became a formally indentified business strategy in 1989, can be defined as “the strategic use of outside resources to perform activities traditionally handled by internal staff and resources” (para. 5). Outsourcing, sometimes referred to as facilities management, is the strategy that involves an organization to contract out certain aspects of a business to both specialized and efficient service providers. Handfield (2006 points out that subcontracting and outsourcing, although similar in nature, are different because outsourcing “involves substantial restructuring of particular business activities including, often,...

Words: 1711 - Pages: 7

Premium Essay

Outsourcing

...Problems in outsourcing 1. Executive Summary Outsourcing is the way of distributing the work in an organization to the other companies, in case the parent company is not having the expertise in handling the situation. Hence, the companies are entering into different business opportunities, even though they are not having the expertise and thus outsourcing the work in the organization to the other potential companies. The outsourcing may be national or international. Generally the outsourcing will be highly seen in the service industry rather than the manufacturing industry. When the work is being distributed to other companies, there will always be a scope for the cultural variations which will affect the efficiency of the organization. As the service outsourcing deals with the different cultured people involved, it is highly discouraged to tie up the performance of the company with the cross cultural management of the organization. Hence, the companies are adopting the cross cultural management such that the different cultured people, processes and the operations will be run under a same hierarchy which will be monitored by the management of the organization. In this document, the effect of the cross cultural environment will be discussed in the outsourcing department and how they have faced problems in designing a global strategy to handle the outsourcing. The management theories like Trompenaars will be specified in this document to enhance the knowledge of these theories...

Words: 2548 - Pages: 11

Free Essay

Outsourcing It

...Outsourcing Yet Another Service: IT Ryan S. Pavlak BRIT (R)(MR) Independence University Outsourcing Yet Another Service: IT In the world today saving the ever so precious dollar bill is the most important thing to almost every business. The outsourcing if information technology services is just another way for a company to potentially save money. Information technology services is not the first service to be outsourced and it is surely not the last. The reason it seems so beneficial is typically because of how mismanaged the internal information technology services, like what was taught earlier in this course. But is it really beneficial to outsource information technology services and who are really outsourcing their information technology services? The cons along with other pertinent information about information technology outsourcing will be discussed further. Who is outsourcing As technology has advanced over the past few decades the age of the internet and information has blossomed. With this developing industry came the need for a service to keep it up and running smoothly, that’s where an information technologist specialist comes into play. This can include any organization from a hospital to a flower shop, if the organization uses technology the need to service those serves will be there. So who is actually outsourcing this service? An article written in the Journal of Accountancy explains that large companies are outsourcing their information technology services...

Words: 1003 - Pages: 5

Free Essay

Outsourcing

...Timmy Throntveit Organizational Theory September 21, 2014 Research Paper: Outsourcing Outsourcing is the practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally (Investopedia). Why do many organizations outsource their business overseas to countries like China or India? Outsourcing is an effective cost-saving technique when used properly. Outsourcing is sometimes more affordable to purchase a good from companies with comparative advantages than it is to produce their products internally. China and India are the fastest growing economies around. The most obvious reason is the reduced costs. Wages for skilled workers are lower in developing countries such as China or India. The outsourcing of American jobs has become one of the biggest topics in the United States. The country's working class faces pressures which they have not experienced since the Great Depression of the 1930s (Magdoff, Foster). Outsourcing continues to have several different opinions from many individuals. On one side of the topic, many are in support due to the low cost for companies. The main reason is outsourcing boosts the United States economy. On the opposing side, many are opposed to outsourcing because of the reduction of jobs in the United States and a variety of other factors. The focus on outsourcing has led to many companies being shipped to foreign countries like China and India. With the rise of technologies...

Words: 2329 - Pages: 10

Free Essay

Outsourcing

...The Trend of Outsourcing Jobs Did the major companies in America not think of global competition as they started to expand their operations and increase the salaries of the workers? Why is it such a hot topic now, why didn't this act of outsourcing start long ago? What effect does outsourcing have on the American economy, will we be able to stop this trend, and if so what will be the effect. In this paper I will be looking at and discussing why companies are outsourcing the jobs overseas. What benefits that companies are getting out of it, and the problems that face management, as outsourcing seems to be the trend of big business. INTRODUCTION Outsourcing is the delegation of tasks or jobs from internal production to an external entity (such as a subcontractor). Most recently, it has come to mean the elimination of native staff to staff overseas, where salaries are markedly lower. There has to be a reason that companies are going to outsourcing rather than hiring people within their own country. The bottom line, the single thing that drives every company in the world. What ever can increase the bottom line you can expect that companies will do everything possible to reach higher profits. Living in Michigan almost my whole life, and being feed from the hand of General Motors outsourcing hits close to home. I feel that the one thing that has increased outsourcing is the results of the union. Back in the time when the union started I believe what they were doing was something...

Words: 3275 - Pages: 14

Premium Essay

Outsourcing

...Introduction Before any company starts outsourcing any part of a company it should be investigated and analyzed thoroughly in order to achieve maximum success. The decision to outsource a part of a company should not be taken lightly but rather seriously. There are many advantages to outsourcing, however, with that some disadvantages come in as well. The following information in regards to advantages and disadvantages was taken out of articles about IT offshore outsourcing. Advantages There are many good reasons to consider outsourcing. Some are listed below. Cheaper Labor – workers in developing countries are paid less Cut Operating Costs – the outsourced work has to be paid for, but this payment is also cheaper than having your company performed the operation itself. Lower Labor Training Costs – training new employees is expensive. Each employee might need one to three weeks of training and that is expensive. When the customer service or IT department is outsourced the training is cheaper. Increase Productivity – Your Company can have employees working on site 24 hours a day. It becomes harder to attract talented employees to work less desirable shifts, however with outsourcing your company can provide service 24 hours a day, with workers around the globe operating in the best shifts available. Focus on Core Business – the outsourcing of the IT department can leave some space for other important departments within the organization. Disadvantages As discussed above...

Words: 635 - Pages: 3