Outsourcing Considerations

Paper Summary:

In this article, the writer notes that outsourcing in today's globalized yet cost-conscious environment can be an ideal way to use new sources of labor and technology to gain a competitive advantage. Utilizing the demand for outsourced labor has also proven advantageous for many overseas firms. However, the writer points out that when a firm is contemplating using outsourcing to save revenue, it is still important to keep in mind the same cautions about quality control and revenue optimization as when conducting the same operations in-house. The writer discusses best practices that are essential considerations when contemplating outsourcing and that can also can be helpful for a firm providing outsourcing as guidelines for service improvement.

Outline:
Consideration 1: Calculate the Complete Cost of the Proposal
Consideration 2: Currency Fluctuations
Consideration 3: Don't Micromanage
Consideration 4: Is Everyone Equally Committed to Best Practices?
Consideration 5: Communication

From the Paper:

" Best practices and process optimization ensure the provider will save money. But some providers do not implement best practices, or their customer organizations do not allow them to do so, which means that sometimes the provider's business practices must be taken into consideration as well as the cost of a bid. A firm that does not implement best practices can be risk for the buyer, if the provider is running things on band-aid solutions. Conversely, a provider may be frustrated when dealing with a firm that does not instate best practices, or has a different definition of what best practices are."

Sample of Sources Used:

• Goolsby, Kathleen. (2007). Risk mitigation in outsourcing in 2008. Outsourcing.com. Retrieved 16 Nov 2007 at http://www.outsourcing-best-practices.com/risk2007.html
• Goolsby, Kathleen. (Apr 2004). HRO's experts share best practice tips for HR outsourcing initiatives. Outsourcing.com. Retrieved 16 Nov 2007 at http://www.outsourcing-journal.com/apr2004-hrbestpractice.html

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