Outsourcing Advantages And Disadvantages Essay

Outsourcing Advantages And Disadvantages Essay-26
A different way of outsourcing would be closing their U. Factories and moving them to other countries, such as China or India.

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This results in lower costs, greater productivity, and increases in profits.

Let's pretend that you are the president of a computer manufacturing company.

Moreover, you are able to focus the home office on research, development, and marketing, which eventually results in an 8% increase in sales.

In a year's time, your company has become much more profitable. Outsourcing occurs when a company retains another business to do part of the company's work.

The companies that perform the work are usually located in developing countries.

Benefits of outsourcing include lower labor costs, less strict regulations, flexibility, reduced overhead, and the ability for the home office to focus on what it does best while letting others do the more low-level work.This is the most popular way to change focus, because it allows them to put much more focus into the design and market without a bad decrease in the quality of the product.Another thing that outsourcing does well is reduce overhead.The first advantage to outsourcing would be the amount of money that it would save the company that decided to outsource something.When the work is sent to another company it is usually because that company most likely makes something more efficiently and it can be bought from them cheaper than if the business were to produce it themselves.Now that they do not have to look over the production process as well they are putting all their effort into design and marketing.Apple is doing the same thing with their hardware for their electronics (Pearlstine).Avery good example of a many doing this would be Nikkei.They sent the production of all their products, which are things like shoes, clothing, and sports equipment, overseas to China.The next advantage would be that the business can focus on things like creating newer, better products and selling them.This is much easier when they are not doing certain parts of the production process, because they can have people who normally, would be doing things with the factories, help with new designs and the marketing of these designs.


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