Submitted by: Submitted by shayshay12
Views: 282
Words: 297
Pages: 2
Category: Business and Industry
Date Submitted: 05/23/2011 06:33 PM
Shared risks & availability of better technology
Companies that choose outsourcing become, in a short time, more dynamic
and eager for changes to be able to face new modifications enforced by
today’s economy. Investments risks made by a company in different fields
are enormous. Markets, competition, laws, financial terms and technology
are changing very fast. It is very difficult to be posted with the changes, especially
when these ones include big resource investments. When we resort
to outsourcing the risks are divided between several companies. A specialized
supplier does not invest on behalf of one single company, but on the
behalf of all clients. By sharing investments, the risks for one company are
decreasing.
Improvement of production and abstraction of delays
The increasing of production – more products or components are processed
outside the company in a shorter time and this way the company’s resources
are pointed to main activities. The contracts stipulate the delivery terms for
the products or components and this way any delay becomes company’s
responsibility. All parts of an outsourcing project can be closely followed.
Additional profits for employees
The productivity and efficiency of employees and management generally increases.
The employees will be included more often in the activities in which
they have the necessary skills and this way their self esteem will increase.
The major benefits can be registered not only in what relates to decreasing
of the costs, but regarding the receptivity of the company. The redefinition
of the job, a better usage of the employers and resources have the big
chance in making decisions concerning the offer of some inside activities to
the specialized companies.
Better stock management
The problem of stock is also outsourced, usually the components or products
arriving just-in-time.
Drawbacks for outsourcing
Many hazards