...Introduction 2. Main part 3.1 Outsourcing definition and types 3.2 Outsourcing and its effect on business 3.3 Outsourcing pros and cons 3. Conclusion 4. Bibliography Introduction The term outsourcing comes with many preconceived connotations, both positive and negative, thus the study of the mechanisms for effective use of outsourcing as a business development tool is also clouded with these perception issues. Much of the academic study of outsourcing revolves around trying to determine if it is a good thing or a bad thing, whether it is harmful to the local workforce or beneficial to globalization, and whether the average company has an obligation, moral or otherwise, to consumers in its home town, state or country to use labor within that region. None of those topics are pertinent to the discussion here and are therefore being immediately excluded. That is not to say that these are not pertinent and valid area of research in their own right, only that they are tangential to this discussion herein. This review will focus on outsourcing as it relates to control mechanisms within company development. Specifically, this paper will attempt to identify the link between control mechanism and outsourcing within the framework of managerial accounting. Outsourcing, literally, is the use of an external source to perform a business function instead of having an employee do it using company equipment. In its simplest form, outsourcing is paying...
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...| Outsourcing your Privacy | | | 4/20/2014 | Business Law Final | | Perhaps BPO is more of a threat than the NSA, when it comes to Privacy! | Outsourcing your Privacy Business Law Final Webster’s dictionary defines privacy as freedom from unauthorized intrusion. The meaning of what privacy is to an extent is driven by the society and its moral norms. Reasonable expectations of privacy in public places must change as our social environment changes. As moral and social norms change in a society the expectation from an individual towards society changes and thereby the individual’s privacy values. For example, slavery was an accepted practice in the late 19th century; today it’s not in practice. In the current information technology age, when an individual submits his personal information for purchasing merchandise online, it is within his expectation that his personal information be protected by the website. In future with the increasing use of technology in the day to day activities, new issues of privacy will arise making today’s notions of privacy out of date. One such issue is the privacy of personal information in business process outsourcing. Business process outsourcing (BPO) is the process of contracting a specific business task to a third-party service provider. There are two categories of BPO. Back office outsourcing constitutes the outsourcing of internal business functions such as purchasing or billing. Front office outsourcing constitutes the outsourcing...
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...ability by checking network configurations routinely and upgrading their security as soon as an upgrade is available. They might even be able to reduce vulnerability even before it rears its ugly head, but what happens when a company decides to outsource some of their work to third party vendors such as business functions and private client information? Even though your company has a stellar track record for security for the business operations they control, they put themselves in a vulnerable position by outsourcing their work, because then you are only as secure as your outsourced business partners. In this paper we will discuss the outsourcing risk of the use of an external service provider for your data storage, the use of an enterprise service provider for processing information systems applications, the use of vendors to support your desktop computers, and the use of a vendor to provide network security. Outsourcing Data Storage A company that secures its valuable assets and protects their secret information within the four walls of the building allows themselves to be vulnerable as soon as they outsource their data to stored by a third party. The problem is generally a manageable one for small business with one or two vendors they outsource too, but as the company grows and the amount of vendors they deal with grows; the issue then becomes exponentially greater. If that vendor gets their network hacked and a hacker steals the information you gave the vendor to protect, then...
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...rest of this document is an exclusive examination of four different outsourcing activities and the associated risks that an organization needs to be aware of. Let me begin with the use of an external service provider for data storage for an organization. This situation is mostly attributed to midsized and few large business with less capital to develop and operate a databases of their own. They may neither have the finance to purchase and operate a database adequately nor the additional funding to hire a skilled IT team to manage a database in-house. In an attempt to effectively and securely manage their data at a lower and affordable budget, many of these organizations choose to outsource their data storage. Even though outsourcing of their database helps an organization to save on cost, there are many risk involve with outsourcing data to external service providers. Among the risks associated with outsourcing an organization's data is vulnerability of data. An organization's outsourced data faces several risks. Some of these includes unauthorized viewing of the outsourced confidential business information, theft and illegal sharing of confidential business...
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...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...
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...Philippine government in making good infrastructure and providing a free training. Will this help the Philippines be the new call center capital? Philippines a new call centre capital? The Philippines is now number 1 in the world when it comes to providing voices service, the top provider of technical support is still India because of its cheaper labor. Business processing outsource companies remain optimistic that Philippines can be the new call center capital in the world with the strength that every Filipino workers has it is possible for the country to be the new call center capital in the world. Because of their excellent communication skills and because they possess a good command of English, Filipino workers are considered a very good business processing outsource assets for the Philippines. The Philippines was cited for having a good supply of workers to fill job vacancies in call center companies. Philippines also has an excellent training facilities, good support from the government, the government is exerting efforts to improve infrastructure programs to provide investor with even more reasons to do business in the country and expand...
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...A White Paper on Strategic BPO in the US Healthcare Industry The Current Healthcare Environment The healthcare environment today faces challenges that it has never seen before. The industry is under attack from every possible direction from cost containment, HIPAA (Health Insurance Portability & Accountability Act) compliance, lack of stability, to an uncertain future. After trying various managed care techniques and concepts the onus to contain costs is now on the healthcare consumer. Concepts such as defined contribution mutated into various consumer driven health plans are being touted as the nirvana pill for an aching industry. Medical and disease management is expected to play a key role for payors as they try to manage healthcare delivery. While executives are trying to grope for answers in an ever changing environment, the light at the end of the tunnel seems far away and a dim one at that. Regardless of the concepts that will or will not be around three years from now, one thing is certain, the degree of COMPLEXITY is increasing by the day. Healthcare Payors are facing the following points of pain: 1. Managing increasing medical costs and balancing customer satisfaction 2. Reducing operating back-office costs 3. Complying with HIPAA standards and requirements 4. Upgrading IT infrastructure and moving to the web to provide real-time connectivity 5. Focusing on survival...
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...outsourcing evolve from hiring payroll processing companies in the 1990s to delegating tasks previously performed by human resources assistants and specialist, such as recruiting, coordinating benefits and handling unemployment climes. Some small businesses outsource entire human resources departmental: however, money companies outsource singular processes. Small businesses to large corporations decide for one reason or another that outsourcing human resources functions is a way to improve efficiency and minimize staffing costs”(R. Mayhew,p 1). Outsourcing HR is a good strategy for business start-ups, and young businesses to early on develop high-quality hr management policies and practices. This allows businesses to spend more time and energy developing their products and customer bases. However, I do believe that business culture and values should not be determined, nor evaluated by an outside source. In the long run, companies should recruit their own talent and manage hr internally. So basically, outsourcing HR can have positive impacts on leadership and employee commitment in the short-term, but may not improve or have negative impacts on leadership and employee commitment in the long-term. HR outsourcing is shaping the future of human resources management. It is becoming an Increasingly attractive option for many organizations and has received considerable attention from the academia. Parallelly, ‘what to outsource’ has always been a much debated issue. ...
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...Transforming process and critical success factors Introduction There has been some very important changes in the economy and business in the past two decades. The economies are merging creating a global market. The role of the Human Resource Manager is evolving with the change in competitive market environment and the realization that Human Resource Management must play a more strategic role in the success of an organization. Organizations that do not put their emphasis on attracting and retaining talents may find themselves in dire consequences, as their competitors may be outplaying them in the strategic employment of their human resources. The role of HR has become more vital and important for each organization. It has a broader range of responsibilities and influence on the business path of an organization. Human Resources is switching from administrative and operational role to a strategic role, which makes a bigger impact on the economical well being of a company. HR should not be defined by what it does but by what it delivers – results that enrich the organization’s value to customers, investors, employees. David Ulrich 1. Traditionally HR is viewed that it performs basic functions or roles for an organizations: - Administrative role has been heavily oriented to processing and record keeping. This role has given HR management low level and non recognized reputation. If limited to administrative role, HR staff is seen...
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...planning program? Since then, in every company a system is one of the ingredients of their success and capacity to give services. Payroll System is one of the fundamental needs of a company. Payroll is the sum of all financial records of salaries for an employee, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees for services they provided during a certain period of time. Payroll plays a major role in a company for several reasons. From an accounting point of view, payroll is crucial because payroll and payroll taxes considerably affect the net income of most companies and they are subject to laws and regulations (e.g. in the US payroll is subject to federal and state regulations). From an ethics in business viewpoint payroll is a critical department as employees are responsive to payroll errors and irregularities: good employee morale requires payroll to be paid timely and accurately. The primary mission of the payroll department is to ensure that all employees are paid accurately and timely with the correct withholdings and deductions, and to ensure the withholdings and deductions are remitted in a timely manner. This includes salary payments, tax withholdings, and deductions from a paycheck. Companies typically generate their payrolls on regular intervals, for the benefit of regular income to their employees. The regularity of the intervals, though, varies from company to company, and sometimes between job grades within...
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...Outsourcing: A problem within itself August 26, 2012 AT&T is a communications and now entertainment company whose corporate headquarters are located in Richardson, Texas and Atlanta, Georgia. AT&T is responsible for most of the ways of communication in America today. With landlines and voice over IP, consumers will be able to construct business or speak with loved ones over the phone. AT&T went through a huge change in the 2000s with the merge of Southwestern Bell, Bellsouth, and Pacific Bell. With the merge and buyout of these companies, AT&T is now in almost virtually every home if you have a landline. A little known fact that people do not know is that, even though you may have another provider, AT&T owns almost 95% of the lines that are ran into your homes, which means, AT&T has become very profitable off of its competitors who have to buy these lines from AT&T in order to still be in business. AT&T has a corporate perks site for employees to purchase goods and discounted rates. Also, AT&T offers a 6% match of your 401K, which is a great reason to seek employment with the company. Due to the merge, a lot of employees lost their jobs due to a non-need of these employees with the AT&T organization. A lot of these employees that came from Bellsouth, etc. were asked to take pay cuts or relocate in order to keep their jobs. This was a huge cost-cutting move which has now led to an increase in jobs and the development of new products....
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...each division’s achievements. There were 3 divisions involved: 1. The Imaging Systems Division (ISD) 2. The Heidelberg Division (Heidelberg) 3. Electronic Components Division (ECD). The dispute arose after ISD tried to commercialize a newly designed a new ultrasound imaging system, called the X73 with advantages in processing speed, cost, and saving- space. Heidelberg participated in the design, but Heidelberg was compensated for the full cost of the time its employees spent on this project. The manager of ISD then wanted to outsource display unit at lower price from Display Technologies Plc instead of internally sourcing from the Heidelberg. The manager of Heidelberg complained about not getting the order to the managing director of the company. And the director arranged a meeting to resolve the dispute. The problem in this case is that decentralized management motivates managers make decision in the best interests of their divisions but may not be in the best interest of the company as a whole. In this case fixed costs of Heidelberg and ECD are irrelevant since the 2 divisions were not operating at full capacity. | Outsource | Internal Source | | Outsource | Internal Source | Revenue of X73 | 340 | 340 | Revenue of X73 | 340 | 340 | Out Source | (100.5) | | Cost of Display unit | (100.5) | (140) | Other Component | (72) | (72) | Other Component | (72) | (72) | Conversion | (26.3) | (26.3) | Conversion | (26.3) | (26.3) | Heidelberg V-Cost | | (28.4) | Contribution...
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...of time, cost and level of service. Global Outsourcing: Global outsourcing is a management strategy by which an organization delegates major, non-core functions to specialized and efficient service providers. Global outsourcing represents a significant shift in the way organizations manage and staff their business support activities. Global outsourcing is enabling business without barriers in a borderless world. As enterprises think global, their outsourcing models have changed to follow suit. Outsourcing is no longer just a short term quick-fix to achieve cost reduction. Global outsourcing uses a blend of onsite, offshore and near shore outsourcing solutions to achieve strategic business objectives for the outsourcing company. Today, there are job titles like "Chief Globalization Officer" and "Strategic Services Manager" - which just goes to show that organizations are taking seriously the impact of global outsourcing on the revenue growth and business value of their companies. As customers get more demanding, competition gets more intense and product life-cycles shrink, there is increasing pressure on operating margins. The complexity of global cross-border business management presents new challenges as companies try harder to stay agile, profitable and...
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...Brook Dennen May 09, 2014 Kudler Fine Foods: Outsourcing and In-House Photography Deciding on whether to outsource your photography to a professional photographer or keep them in-house depends on many factors. There are numerous benefits to outsourcing and using a professional photographer. But, as a business, Kudler Fine Foods must review both the pros and the cons of outsourcing in order to decide if it is the right decision for them or not. Outsourcing the company’s photography allows Kathy Kudler to spend more time working on making the business strive rather than spending valuable time editing photos and images for advertisement purposes. Hiring a professional photographer is less costly than handling their photos in-house. Professional photographers are experts in their fields and Kathy Kudler can relax knowing that the company’s photographs are being worked on by those with immense knowledge in the field. The company’s photographs are a form of money making advertisement, so the cost for professional photographers is minuscule compared to the profit gained by the amount of new customers that will be drawn in. Kathy Kudler should also understand that there are drawbacks to outsourcing the company’s photographs to a professional photographer. When hiring a photographer, there is a risk that Kathy may lose control over that aspect of her business. There needs to be consistent communication between the commercial stock photography brokers that Kathy uses,...
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...Abstract This paper examines how outsourcing affects a business positively and/or negatively. During this paper I will discuss the advantages and disadvantages of outsourcing. There are many reasons why a company may choose to outsource a particular function of their business. The end result in mind is saving time and/or money. Before a company considers outsourcing it should first do a competitive analysis of its company before initiating an outsourcing analysis. The company should also consider the advantages and disadvantages of outsourcing. The advantages are the following: reduction in critical resources, provides ability to focus on core business, yields cost savings, provides flexibility, reduction overhead costs, etc. The disadvantages are as follows: loss of managerial control, hidden costs, threat to security and confidentiality, quality problems, tied to financial well-being of another company and bad publicity and ill-will. When you think of outsourcing do you think of a call center in India or jobs be taken away from Americans and sent overseas? Well, since the Industrial Revolution, companies have wrestled with how they can take advantage of their competitive advantage to increase their profits. The standard for majority of the 20th century was a large integrated company that can “own, manage, and directly control” its assets. In the 1950s and 1960s, the constant theme throughout the business community was diversification to expand corporate bases...
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