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Outsourcing by Nike, Telstra and Boeing

In: Business and Management

Submitted By elicahiu
Words 1368
Pages 6
Executive summary: Outsourcing allows company to reduce their cost and gain a competitive advantage and this idea is strongly adopted by companies all over the world. Outsourcing is an agreement in which one company contracts-out a part of their existing internal activity to another company. Outsourcing benefits company because it maximizing company’s resources, more efficient output and make legal agreement for performance guarantees. Telstra is Australia’s leading telecommunications and information service company (telco). Telstra has been using BPO (Business Process Outsourcing) which creates substantial business across Asia, North America and Europe. For home country, owners earn cost & saving efficiency and diversity of intellectual talent, hence, government face unemployed labor force and manager loss their ability to control as the disadvantages. For the host country, employees improve their life standart and there are economic growth. But, there’s higher social gap and inflation for the host country. Nike is a major publicly traded sportswear and equipment supplier based in the United States. They outsourced Customers services, manufacturing, advertising, promotion, charity, and society impact. For the home country, it cut their cost and expand international market, hence, it also bring negative social impact and mislead reputation. For the host country, it make lower unemployment rate and financial & risk reduction. Meanwhile, market monopoly and legal/ethic issue as the drawbacks. the Boeing Company was operated in 1916 and started to control the commercial airline market. Boeing industry has various functions that an organisation can outsourced such as human resources , society impact and the company’s information technology functions. It result in lower cost and more efficient time for home country, but as disadvantages, home country...

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