Outsourcing Of Manufacturing And Services Essay - 1237 Words

Literature Review Offshoring of manufacturing/services/innovation activities by advanced economies to China, India, or other countries. Introduction For years now it has been widely practised for large companies and firms to outsource manufacturing, services, and innovation activities to low-cost countries like China and India. However, while it may have always existed, it has only been in recent years that is has really started to take off. As discussed by Dossani and Kenney (2007, p.779), â€Å"in less than six years, offshoring of services has evolved from an exotic and risky strategy to a routine business decision.† The extent of this growth is having a huge effect on both emerging economies and advanced economies. According to Apte (2006), new product development is now the fastest growing offshoring segment in India. Advanced economies now have the ability to produce products at a far more productive and efficient rate than ever before. This also means that emerging economies can expand their own economies by having more people employed and paid. Unfortunately, many firms still have not taken advantage of this, and a s discussed by Waltz (2005) it’s the stability and quality of work that is often what discourages firms. Define, and identify the extent of offshoring Offshoring is the practice of basing some of a company s processes or services overseas, in order to take advantage of lower costs to be more efficient. This practise is rapidly taking off for various tasks,Show MoreRelatedThe term outsourcing refers to the act of contracting out business activities and procedures to a1300 Words   |  6 PagesThe term outsourcing refers to the act of contracting out business activities and procedures to a third party. The act of outsourcing sometimes involves the transfer of assets from one organization to the other. The term is also used to describe the act of handling the control of public services to the private corporations. Outsourcing mainly involves both the local and foreign contracting. At times, the term is used to describe relocation of business organizations to another country which is a alsoRead MoreOutsourcing Is An Operations Management Tool876 Words   |  4 PagesOutsourcing is an Operations management tool that is being used more and more by organisations in the effort to seek and maintain competitive advantage. Discuss the history of and reasons for using outsourcing the advantages risks and how you would mitigate those risk using examples of success and failure to illustrate your answer. Outsourcing has become increasingly commonplace in businesses today. Outsourcing is defined by â€Å"the strategic use of outside resources to perform activities traditionallyRead MoreDetails of Outsourcing Decisions774 Words   |  3 Pagesmany details about outsourcing decisions as you can . include the type of of activity being outsourced , the size of the outsourcing being outsourcing and the type of company providing the outsourcing service. Different companies or organization uses outsourcing by transferring portions of work to outside suppliers rather than completing it internally to reduce cost. Outsourcing is very effective if used properly and gives a company short term or long-term effect. Outsourcing is currently relativelyRead MoreOutsourcing China Essay1024 Words   |  5 Pagesrecent years, Chinas service outsourcing have been expanding from scratch, and gradually expand the field, scope of business mainly related to Information Technology industry, producing services, as well as cultural and creative industries, the target involving Japan, Korea, Europe, America and India. In Shanghai, Beijing and other cities formed a group of outsourcing industry cluster, with significant economic benefits of international service outsourcing park; local outsourcing companies grew rapidlyRead MoreOutsourcing : Outsourcing And Outsourcing1579 Words   |  7 Pagesâ€Å"Outsourcing refers to obtaining certain services or pr oducts from a third party company, essentially sourcing something like accounting services or manufacturing of a certain input to another company. While many think outsourcing refers to using a service provider in another (usually cheaper) country that is not necessarily the case. Outsourcing can be done to a company that is located anywhere, the location isn’t important.† (Offshoring vs. Outsourcing, n.d.). There are many reason a businessRead MoreIs Outsourcing A Business Practice?983 Words   |  4 PagesIt should be illegal for US-based businesses to outsource their customer service to foreign countries because it weakens the economy and the job market in the US. Offshore outsourcing is a business practice or process that means to export information technology (IT) and manufacturing jobs to other developed countries outside of the US for the sole purpose of cutting costs, such as labor costs and tax savings. By doing so, the US economy is negatively affected, unemp loyment rises, and funds throughRead MoreCustomer Relationship Management ( Crm )1359 Words   |  6 Pagesone of the highest in the auto industry (2010). Supply chain planning is another tool that helps companies to optimize the delivery of products, information, and services to customers. Other tools include supply chain planning, sales and operations planning, business intelligence, procurement, product lifecycle management, manufacturing execution systems, warehouse management systems, transportation management systems, and six sigma. Finally, customer relationship management (CRM), is a valuableRead MoreOutsourcing In The Airline Industry833 Words   |  4 Pages Outsourcing in aviation has become a very common practice. It now encompasses everyone from manufactures like Boeing and Airbus to airlines outsourcing their maintenance, ground labor, even ticketing and customer service. Usually most proponents of outsourcing will cite that it saves money and possibly increases knowledge sharing, which can lead to new innovations. Those that are against outsourcing often bring up the fact that you can easily loose quality control, poo r customer service and possibleRead MoreOutsourcing And Re Shoring Production1732 Words   |  7 Pagesformerly invulnerable to offshoring to be sent overseas. As globalization advances, the off shoring movement is likely to escalate as well. Nonetheless, numerous manufacturing companies such as Caterpillar, Bosh, and Phillips have disclosed that they will return part of their off-shored production to their home countries.(When Manufacturing moves back 1) Throughout this paper I will discuss the politics of offshoring and re-shoring production as well as reflect on globalized production and how theseRead MoreOutsourcing and Off Shoring is Unethical Essay635 Words   |  3 PagesIn light of recent growth of domestic and foreign countries outsourcing and off shoring over seas, companies been taken advantage of the cheap labor cost for outsourcing and off shoring manufacturing. Competitive business investing in domestic and foreign manufacturing have affects every part of the busine ss industries from design, software development, finances and logistic management, i.e., customer and sales. Nevertheless, outsourcing been praised by businesses for outcomes of cost-effectiveness