2. INTRODUCTION
The concept of outsourcing came from the American terminology“outside
resourcing”, meaning to get resources from the outside.A practice used by different companies
to reduce costs by transferring portions of work to outside suppliers rather than completing it
internally. The term waslater used in the economic terminology to indicate the use of
external sources todevelop the business, which typically were using their internal resources.
According to an article published in The Economist, Tim Hindi stated thatoutsourcing is an
old phenomenon that has made its presence felt since the timeof the Second World War,
knowing a remarkable trend especially outsourcing is seen by many as a future trend,
which brings after 1990.There are many benefits to the partners, yet there are voices that
question the effects ofthis phenomenon. In recent years, the specialty literature was focused
increasingly on. In education, outsourcing can appear in many different forms. From basic
structural maintenance services—food, editorial and landscaping—to course delivery
systems used by instructors, to the core IT foundation. Outsourcing” can and should be a
“friend” to educational institutions around the world.
Outsourcing strategy when addressing the topic selected design variant. Theplan for
the development of a system is found and the option of outsourcing andas well as how this
solution can be used during any project to implement the system. If in the choice of
outsourcing routine activities, accounting, humanresources, marketing things are relatively
clear and can call on previousexperiences in the systems development quite a few problems
appear, due todemanding requirements of clients, lack of experience leading to difficulties
in selecting the strategy that best meet business objectives“outsourcing” has gained an
unfavorable reputation. Rather than being a neutral word that describes the act of
leveraging outside help for an aspect of one’s business, it’s become synonymous with
“something bad.”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 decide to outsource book-keeping duties to
independent accounting firms, as it may be cheaper than retaining an in-house accountant.
Outsourcing is a strategy that can benefit a company’s bottom line. Outsourcing occurs
3. when a company retains another business to perform some of its works activities. These
companies are usually located in foreign countries with lower labor costs and a less strict
regulatory environment.
BENEFITS
Outsourcing can provide some significant benefits for companies. Advantages of
outsourcing include:
Lower labor costs. Companies typically outsource to businesses in developing countries
where the cost of labor is significantly cheaper. Lower labor costs will improve the
company's bottom line.
Less regulations. Developing countries often have a low level of regulatory restrictions,
which can also reduce the cost of operations and increase productivity. For example, there
may not be limits on overtime or on work health and safety issues.
Focus on core competencies. Companies that outsource lower-level work, or work the
business is not optimized to perform, can then focus on the work activities at which they
excel. This will increase productivity, efficiency and effectiveness. For example, a tech
company in Silicon Valley may be better off outsourcing its manufacturing operations to a
company in China so it can focus on research and development.
Reduced overhead. Outsourcing can also reduce a company's overhead costs because the
outsourcing company uses its own facilities, equipment and personnel to perform the work.
In fact, it's theoretically possible to engage in massive manufacturing ventures out of a
room in your house if you outsource all the manufacturing to a factory overseas.
Flexibility. Outsourcing means that you can stay lean and mean, which makes it easier to
adapt to change. For example, you don't have to invest a bunch of money and resources
into new plant and equipment that may become obsolete quickly. Instead, you can pass that
risk off to the outsourcing firms.
In the end, all of these advantages tend to lead to the possibility of a very efficient
and streamlined firm that focuses on doing what it does best and outsourcing activities that
others do better. This results in lower costs, greater productivity and increases in profits.
4. CONCLUSION
Outsourcing is a trend that is becoming more common in information technology
and other industries for services that have usually been regarded as intrinsic to managing a
business. Outsourcing sometimes involves transferring employees and assets from one firm
to another, but not always. Outsourcing is also the practice of handing over control of
public services to for-profit corporations. Outsourcing is a very important tool for reducing
cost and improving quality. If an organization does one or all its work by itself, its work
may affect its production quality. So, an organization must recognize some important areas
where it can reduce its costs and maintain high quality in its products the advantages of
outsourcing include reducing stress levels that heave ones shoulders and obtaining the
services of those, such as experts who specialize in a given field or task. Time constraints
are also relieved because more than one party shares the weight. Weight distribution
balances everything out, minimizing the stress involved. Further, since these specialists are
focusing on a particular aspect of the business, the quality of the product is sure to increase,
making all parties look good happily satisfy business needs and desires..
REFERENCES
Alders, R. (2001). The IT Outsourcing Guide, John Wiley & Sons, Ltd, Chichester
Barker(2008). “Social Media Marketing: A Strategic Approach” .Sterling
publishers pvtltd. Delhi.
Baldwin, L.P., Irani, Z., Love, P.E., „Outsourcing information systems: drawing
lessons from a banking case study”, European Journal of Information Systems,
10(1), 2001
Currie, W. (1998) “Using multiple suppliers to mitigate the risk of IT outsourcing at
ICI and Wessex Water”, Journal of Information Technology, 13(3),
Jackson Matthew( 2010). “Social And Economic Networks” Nicholas International
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