Free Essay

Outsourcing Paper

In: Business and Management

Submitted By cassandramarie17
Words 3578
Pages 15
Problem Solution: Global Communications The course of identifying solutions for a business can be intricate, particularly if the business is not sure of what steps to take to create success. To help assist in figuring out multiple dilemmas in Global Communications workplace, many thoughts are taken into consideration. Throughout the following paper, research will explain the issues, opportunities and ethical dilemmas that Global Communications has encountered. Along with alternative solutions, the possible risk involved and the optimal solution chosen. Global Communications end-state goal, evaluation and implementation plan will all be addressed throughout the paper.
Situation Analysis
Issue and Opportunity Identification The Global Communications scenario offered three considerable factors that lead to the outsourcing of job employment overseas. After further analysis the lack of sufficient technology and advanced integration, the Global Communications scenario states that “lead to the tremendous economic pressure bemoaning of stockholders on diminishing returns and further speculation about industries ability to rebound and further stock trade deprecation”. The aggressive behavior of the company in compensation, stock options coupled with poor allocation of funds, has put global communication in the situation they are in now. Aggressive compensation packages, improper allocation of funds that should have been used towards competing with technology ultimately impacted the directions stockholders took to off set expenses and ship employment overseas.

Stakeholder Perspectives/Ethical Dilemmas The various stockholders include the employees, management team and consumers. While there interest may be the same in terms of maintain a high stock value, they also have the same common interest, which is stated in the Global Communications Scenario, “company that values customers expatiations”. Employees at Global Communications are loyal, in the past Global Communications has taken care of employees. The employees deserve to know what is going to happen with the revisions that are being made with Global Communications.
The stockholders that are not sharing information with Global Communications employees are the management team. The management’s main interest is to improve Global Communications by any means necessary. In making these decisions to improve Global Communications management should be up front and allow everyone to know what the upcoming plans are for the company. The ethical issue that occurs is that management team goes behind the unions back to implement the change of outsourcing.
With all the new changes Global Communications main goal is to maintain and appease the consumer. The consumer interest is having a company that can complete all of their needs and a company that is proficient and knowledgeable about the product that is being sold.
Problem Statement
In the future, Global Communications goals are to increase company’s profit and globalization of the company. Global Communications plans to outsource employment to benefit managements and stockholders needs to be cost affective. Global Communications is also pushing forward with introducing new services that are meant to enhance the market value of the company.

End-State Vision In the foreseeable future, as a leader simple structure in employment scheduling, compensation, and training for effective enhancement in call center and other jobs will create a better work environment. This can be achieved by continued education with in the job, potential merging with other companies that can create growth with in the company, producing a good company image and stock value. Sending call centers overseas will cause ethical issues for the company many believe that our economy needs to be built back before we can give money to another. Also sending jobs overseas increases the Unites States unemployment. These are all ethical issues that need to be looked at in the future with making major decisions. In the future Global Communication needs to implement on the job training so that customer service is up to par and employees are knowledgeable to the needs of the consumer. Tutor2u states that, “ It is cheaper to continue employees growth with a company, rather than rehiring”. In return the company provides customer and employee satisfaction, along with strengthening Global Communications.
Alternative Solutions
Companies face many issues that can lead to the fall of a corporation. Global Communications faces many issues that arise within companies in the same job market. Global communications must find a way to increase the company’s profit, improve market tactics and a way to compete with the competition and give advanced training to employees. All the telecommunications companies are losing profit due to economic pressure as state in the Global Communications Scenario. Global Communications must increase their benchmarking process and research successful telecommunication companies. By researching other companies Global Communications can implement ideas that have been successful for the other companies. Global Communications can also merge with a company that fulfills the marketing aspect that Global Communications lacks. Merging with another company allows Global Communications to have the potential to grow and improve their profit. By merging with another company this may not only increase Global Communications profit but it also could improve marketing tactics of the company. Global Communications has to improve the marketing of the company by adding new products that are appealing the consumer. Also, Global Communications must further customer satisfaction this can be done by improving the marketing, and the marketing of new product so that consumer have various choices of services that they are happy with. Global Communications need to find a way to set them aside from the competition. Global Communications needs to implement a bench marketing section into the company. This will allow GC know what is creating success for competitors, and impellent into the company to create success for Global Communications. Lastly, Global Communications needs to implement training tactics to current employees. This will help them grow and stay up to date with the training. Tutor2u states that, “it is cheaper to keep employees and invest in there training, than it to hire new ones”. Also that “ as training progresses and the employees begin to feel more confident, this will allow them to work at a higher standard and ultimately be more productive”. More productivity will create higher success with employee’s interaction with customers allowing them to make the consumers satisfied.

Analysis of Alternative Solutions
There were multiple alternative solutions explained in table three. Global Communications has to create cost cutting measures to enhance the company’s profit, globalize the company, implement efficient call centers with proficient services for customers and improve employee’s skills. The solutions that I felt would be the best to put into action were to outsourcing which will allow the company to reach their goal of gaining profit. Increasing employee training which will allow current employees to be proficient in their skills, and complete the goal of increasing customer satiisfaction. Also merging with another company, this will allow Global Communications to reach the goal of, making a strong company that gains profit, and has opportunity to reach globalization. The solutions that I believe were not the best were, continue with business and see if the market economy picks up, and implement new business plan that puts Global Communications in a different market area. I rated these the lowest because obviously Global Communications has problems that need to be addressed, to just stay in the same place waiting for the economy to pick but could potentially be the end of Global Communications. Lastly, to change Global Communications field of product is a drastic implementation. This would only happen if someone else bought Global Communications and switched the use of business. To complete the task of transforming a company would be costly.
Risk Assessment and Mitigation Techniques
Many risk are associated with implementing alternative solutions within a company. Alternative solutions have many different outcomes with high to medium risk. My first alternative solution is merging with another company and second is to enhance the skills of current employees. If Global Communications enhances training for employees is a low risk. Enhancing employee’s skill in the long run will benefit Global Communications. It is always a good thing to have continuous learning. Tutor2u states that, “Not only will this increase employees knowledge, but also will help decrease boredom within the job”. The risk of giving employees skill enhancement classes is that they may take their knowledge gained and leave the company because of increased skills. If Global Communications decides to merge with another telemarketing company, this has a medium risk. Merging will allow Global Communications to expand which will help in the process of globalization. On the down side when companies merge they combined departments, which means that some employees have to be fired. Before Global Communications decides to merge with any company, research should be done in order to insure that both companies are compatible for each other. Also, make sure that the strong points in the company that Global Communications merges with are what they needed for success.
Optimal Solution
To achieve the optimal solution Global Communications would use minimal outsourcing, incorporate organizational communication between management and union employees, create on the job training increase the skills of the employees, and positive attitudes.
Organized communication is important and involves certain steps for communication to be effective for business. First, I would start off by getting rid of middle management, to reduce tension within the employees; they were not truthful with the union or employees. After letting them go I would hire more management help, with them knowing that company employees are important and deserve to know what is going on. The new management group will consult with union and employees on problems that can be discussed, to improve their jobs along with improving Global Communications.
Next, the company would implement on the job training programs, this would increase employee’s job skills and enhance customer service, due to the knowledge gained by the employees. By increasing skills and knowledge this allows the employees to keep their jobs and reduce outsourcing. This will also reduce ethical dilemmas that have already taken place within the company. Furthermore, Global Communications will not alienate the workers that work form the company.
In addition to making Global Communications a better work environment, research will also be done on other companies. In hopes of finding a solution to increase Global Communications profit. Within a few months of researching if there is no success, the company will find a company to merge with in order to create a strong company. That creates profit and success for the two parties involved.
Finally, all of the above changes will create a positive work place for management, employees, union and board. All ethical dilemmas will be out in the open for everyone to have input and opportunity to come up with solutions. By incorporating my steps into Global Communications, the company will have a chance to grow and increase the opportunity for Global expansion and continue to have a strong home base in the United States. The optimal solution plan present above, helps Global Communications achieve their end state goals on various aspects. The end goals that are to be achieved creating structure for the company, creating a better work environment, enhancing employees skills in order to improve customer service, create growth in the companies stock, produce profit, and create a positive image for Global Communications. By implementing the optimal solution plan above, enhancing the employee’s skills by using on the job training, will create a more positive work environment. Employees will have more confidence and will have a higher skill performance; this in return will help customer satisfaction and bring outsourcing to a minimal. As well as implementing benchmarking research to improve the profit of the company, if that does not increase profit to meet the company’s standards Global Communications will merge with a company in order to create profit for the two companies.
Implementation Plan Implementing new concepts into Global Communications may be a challenge but it is possible. It is possible to make Global Communications into a company that has a wonderful image, expert employees in their field, which enhances customer service and a company that gains profit. As stated also in my optimal solution, Global Communications goal is to reduce outsourcing, which does not mean that it will not be used. The goal is to outsource call centers over seas within in the next one to two years, which will be implemented by the CEO. Before the outsourcing takes place Global Communications will implement on the job training for current employees this will take affect in the next four months, which will be organized by the human resource department. The last step that is put into action is the merging with another company. This step will take between one to two years. The company need to enhance the skills of employees, so if merging takes place Global Communications can keep there employees because of their expertise in the field.

Evaluation of Results
The end-state goals are to enhance employee skills by having on the job training every three months, increase customer satisfaction by implementing customer surveys after each call they make to the call center, this will enhance satisfaction and tell management what needs to be altered. Reduce the company’s cost by analyzing what the company invest money in and how much is invested into each section of the business. Finally, Global Communications need to enhance their profit within the next year by improving the company’s service and adding a large market within the company, which may mean merge with another company.
Conclusion
In conclusion, knowledge that has been gained while conducting research for Global Communications consists of realizing that outsourcing is not the only key to the success of a business. Investing money and training into the employees of a company can create the success of a business. Furthermore, a company does not have to have conflicts between ethical beliefs and maintaining success to create a victorious company. After much research and investment in the right areas Global Communications can grow, increase profit and have successful outcome.

References
Maul, J. (n.d.). Generic Benchmarking: For Solving Problem. and for Life. Retrieved August 18, 2009, from University of Phoenix, course materials, MMPBL500- Foundations of Problem Based Learning.
McShane, S.L., & Von Glinow, M.A. (2005). Organizational Behavior: Emerging Realities for the Workplace Revolution,. Retrieved September 1, 2009, from University of Phoenix, rEsource, MMPBL500 – Foundations of Problem Based Learning.
Tutor2u (2009). Training-on the job. Retrieved September 4, 2009, from http://tutor2u.net/business/people/training_onthejob.asp. United States Department of Labor. Retrieved September 3, 2009, from http://www.doleta.gov/Business/Community-BasedJobTrainingGrants.cfm

Table 1
Issue and Opportunity Identification
Issue Opportunity Reference to Specific
Course Concept
(Include citation) Concept
Global Communications has to communicate that they are planning to downsize the call center due to a recent outsourcing deal that has been made. Marketing the company on an international level. University of Phoenix, Scenario: Global Communications. Retrieved August 20, 2009. Communications
Cable companies and other long-distance markets are stepping up their business combining packages for great prices. In return Global Communications has to market its company so they do not fade into the back round. To partner with satellite provider to give video access and wireless provider to give internet access. This in return will help GC’s competitive edge. University of Phoenix, Scenario: Global Communications. Retrieved August 20, 2009. Generic Benchmarking
Global Communication is known for treating employees well, which in return creates a competitive edge for the company. This edge comes from the hard working, loyal employees. The issue now is that they need to cut employees pay 10% and move them into a new position. Due to new implement that is occurring in the company “cost-cutting measures” have to be taken. Customers receive more “technical sophistication from sales people”. This is the other countries expertise and it is way cheaper to pay employees overseas. University of Phoenix, Scenario: Global Communications. Retrieved August 20, 2009. Employee Loyalty

Table 2
Stakeholder Perspectives
Stakeholder Perspectives

Stakeholder Groups
The Interests, Rights, and
Values of Each Group

Customers The customers are the most value part of the organization. If GC had many customers and great service the organization would not have this dilemma. The customers dictate the success or decline of this company.
The management team This team has to improve Global Communications, by any means necessary. They have a touch role they have to take into consideration the interest of the company and the employees that having been working and loyal. This team should have major support from higher authority and they should allow them much leeway to get this task completed.
Employees The employees are the individuals that go to the work everyday, without employees a company would not stay afloat. The employees have the right to know what is going on in the company not last minute they have been loyal and a valuable asset. Especially when jobs are on the line.

Table 3

Analysis of Alternative Solutions
Relative Importance (Weight)==> GOALS Create cost cutting measures with in the company Continue with globalization for Global Communications Create proficient services for consumers Improve employees skills Final Rating 2 5 4 3

ALTERNATIVE SOLUTIONS Primary Alternative Solutions A) Partner with other telecommunication companies. 2 4 4 3 2.5 B) Outsource allowing the company to gain profit. 4 5 3 2 3.1 C) Advance with pay cuts and employee layoffs. 5 3 3 2 2.5 D) Increase current employee training, allowing them to be proficient at position and other positions allowing them to change jobs within business. 3 4 4 5 3.5 Secondary Alternative Solutions Continue with business to see if job market picks up. Implement new ideas into the company creating profit.

Table 4
Risk Assessment and Mitigation Techniques

Risk Assessment and Mitigation Techniques
Alternative Solution Risks and Probability Consequence and Severity Mitigation Techniques
Outsourcing • Large Risks
• Layoffs
• Pay cuts • GC risk losing competence, knowledge and relationships
• Layoffs will occur which will affect people living in the area. Cause an increase of unemployment.
• This will also affect the reputation of GC. • Try to keep these employees and the employees with these qualities in different positions.
• Help the employees that get laid off, have resources available for them to find new jobs
• Build the reputation back my informing the public about there new vision, share a vision that people are excited about and so they will accept the decisions that were made by GC.

Give advanced training to employees so they can advance in position and skills. • low Risks
• Management may disagree but union and employees will be happy.
• Skills will increase so they can continue to work for the company but, the company still might fall, increase of money usage, for classes. • This could possibly help them keep their jobs.
• Employees may come up with new ideas and positions that could help the company, while increasing their skills.
• This will possible cause issues between the management and union. • Allow this so people can develop and enhance skills, if they do lose their jobs GC has helped increase their qualifications when looking for a new job.
• The business world is continuously changing this will allow employees to improve skills and knowledge in return improving the company.
• Training can be cost effective, cheaper to train old employees rather than hiring new ones.

Merge with other companies. • Medium Risk
• Allow the company to expand if it works out between the companies.
• They may still have to cut employees due to the merge with another company, and they may lose money in the beginning. • If this does not work GC could lose a lot of money and potential fall under.
• GC could merge and have great success allowing the business to grow and gain profit.
• New thoughts may arise from the merging of two companies. • Also make sure that GC is making the right decision by merging, GC may be able to have success without merging.
• Make sure that the company that GC merges with has what is need for there consumers. (Has what GC needs).
• Must do research on the company that GC wants to merge with in order to insure that each are compatible for each other.

Table 5
Optimal Solution Implementation Plan
Deliverable Timeline Who is Responsible
Outsource Call Centers overseas. 1-2 years CEO
Implementation of new telecommunication products to GC. 2- 2 ½ year CEO and Vice President.
Merge with another telecommunication company. 1 -2 years VP
Enhance employees communication skills and on the job training. 4 months Human Resources
Tell employees about the plan to send their jobs overseas. In a year 1 ½ so they have six months to look for a new job, if not some might leave company early and we will have no help. Human Resources

Table 6
Evaluation of Results
End-State Goals Metrics Target
Enhance employee satisfaction Surveys for employees to complete and an idea section for them to implement new ideas to enhance the company. Every three months.
Enhance employee skills Send employees to training. Send them every six to seven months.
Reduce Companies Cost Analyze what the company uses and how much they spend on everything. Including employee hire, pensions ect. Review every six months and start now.
Enhance profit to company Enhance by improve companies services and adding a larger market within the company. Increase companies profit by 2010.
Enhance customer satisfaction Implement customer surveys after they call the call center ask them to answer questions Implement to after every call a customer makes to insure satisfaction.

Similar Documents

Premium Essay

Outsourcing Paper

...Outsourcing Teresa McGlown BUS 630 Wendy Achilles 08/27/2012 Table of Contents Introduction 1 Forms of business aspects covered by outsourcing 1 Outsourcing with reference to Hechlinger, J. Article 2 Other articles highlighting the application of new learning with respect to outsourcing 3 Dean Meyer’s Article highlighting the advantages of outsourcing 3 Sholstica’s Article highlighting the disadvantages of outsourcing 6 Present and future application of outsourcing within workplace 6 Conclusion 7 References 8 Outsourcing Introduction In the present dynamic environment, one way the companies can gain competitive edge over their competitors is by taking full advantage of all the business aspects. One of such possible aspect of performing organizational activities in an efficient manner is through the platform of outsourcing that provides a company an opportunity to hire an outside firm having proficiency in a particular field and then getting some of the organizational tasks completed through this hired firm either at a reduced cost or an increased productivity rate. A number of factors (both related to internal and external environment) are considered that helps to decide that whether outsourcing is a right answer for a particular company. The process of outsourcing facilitates learning of a number of aspects that if properly applied within an organization can serve as a competitive element for the company, enabling them to remain a competitive force within...

Words: 2059 - Pages: 9

Premium Essay

Riordan Mnfg Outsourcing Paper

...Riordan Manufacturing Outsourcing Plan Introduction Riordan Manufacturing (RM) is an established global plastics producer, which employees 550 individuals and their projected annual earnings are $46 million. RM has production divided among three plants. RM’s mission is to focus on achieving and maintaining profit that ensures that the financial and human capital is available to sustain growth. In week three, team C established four potential outsourcing options. Of those four potentials, RM stands to gain the most potential from outsourcing customer relationship management (CRM). This could cover service, sales, and marketing. Services that will be provided include the call center support, field support management, e-Service, campaign management, sales forecasting, account management, and pipeline management. Outsourcing will assist with new government required reporting requirements. CRM will assist RM for future outsourcing projects such as switching over to compatible systems for finance and accounting. Situation Analysis RM is recognized for their innovation and providing customers with new products. An outsourcing plan pertaining to CRM has been established below. The success of the project will be measured by the performance measures; customer satisfaction, marketing, and employee retention. Outsourcing Plan Based on research by RM they have created a cost-effective recognition program that is aimed at motivating employees, increasing retention, and increase...

Words: 2424 - Pages: 10

Free Essay

Outsourcing in Healthcare

...Outsourcing in Healthcare Outsourcing in the health care industry continues to grow in an effort to cut the raising cost, to increase efficiency and quality of care by hospitals nationwide. As annual healthcare spending in United States hit $3.8 trillion (Munro, 2014), and aging population in America is increasing with the retirement of baby boomers and higher demands for patient care, the cost of healthcare will continue to grow. In response to increasing cost, many hospitals will employ outsourcing to save money and combat rising costs. This paper will examine outsourcing trends in healthcare. Prevalence and Trends Outsourcing is not a new trend in healthcare. In the past, medical centers successfully outsourced support services, such as construction, IT, translation, laundry services, housekeeping and food services. Today, in an attempt to reduce rising cost of healthcare services, hospitals increasingly turning to outside contractors for patient care and clinical services, such as medical staffing, radiology services, laboratory services and clinical specialties. The clinical specialties most frequently outsourced are anesthesia, emergency department, dialysis services, diagnostic imaging and hospitalist services (Waller, 2012). For information technology, 97% of respondents report outsourcing one or more of these services, such as EMRs, patient satisfaction surveys, help desk, CPU and peripheral maintenance and local IT support (Waller, 2012). According to Modern Healthcare...

Words: 1990 - Pages: 8

Premium Essay

Telecommunications

...This paper describes the situation at the United States (US) based company, Global Communications (GC) in the telecommunication industry. Different challenges and opportunities at GC are discussed. The paper continues by discussing the different stakeholders' perspective/ethical dilemmas and continues by framing a problem statement for the Global Communications situation. An expected end state situation is then described for GC scenario. The paper continues by analyzing different alternative solutions to the Global Communications situation , the risk for each solution is described and an optimal solution from a numbers of alternative solutions is selected. An implementation plan for the selection solution for the Global Communications situation is described and a metrics to monitor the plan is presented. This paper concludes by reviewing the selected solution to the situation and discussing the expected result. Issue and Opportunity Identification As a result of competition from cable companies, the United States based company, Global Communication (GC) is losing market share and profitability in the telecommunications market. The traded stock value has dropped from $28 to $11 in a two year period and stockholders are receiving diminishing returns (University of Phoenix, 2006). The stockholders have lost confidence in the management. Management is under pressure to renew stockholders confidence by increasing returns on the stock and the traded stock value. Senior management...

Words: 2824 - Pages: 12

Premium Essay

Outsourcing Characteristics

...Running head: Outsourcing Characteristics Outsourcing Characteristics Name CMGT 578 23 September 2013 Professor Scott Goodman Outsourcing Characteristics In this paper, the Outsourcing features will be talked about in great deal and the features will consist of what are the influential aspects in a company determining to outsource. One reason that most companies select to outsource is that they have a prospect to reduce needless expenditure. In addition, the risk engaged in outsourcing will also be reviewed, this risk is that company information is no longer confidential and the partners you selected to outsource currently to have access to all the company information. Faith and professionalism is significant in selecting to outsource to a partner. The advantages of outsourcing will also be conferred in this paper as well. I will explain in detail the method following outsourcing and the company following outsourcing. When establishing whether a company is supposed to, they contemplate many elements and one may be nothing, but the cost cutback. This also has an effect on estimate timelines, project timelines are decreased and the labor cost is cheaper. Many companies that decides to outsource their business because the pay rate is considerably lesser in the region where they would contract out their job. Another deciding element is in the assessment to subcontract the company, they do not have to employ consultant or experts...

Words: 1432 - Pages: 6

Premium Essay

Employee Morale

...Adversity of Outsourcing: Outsourcing from the Employee’s Perspective Schillen & Steinke Mitigating the Adversity of Outsourcing: Outsourcing from the Employee’s Perspective Sarah J. Schillen Seattle Pacific University USA sschillen@gmail.com Gerhard Steinke Seattle Pacific University USA gsteinke@spu.edu ABSTRACT This paper explores how outsourcing activities and decisions put the well-being of the remaining employees at risk, ultimately affecting productivity and creating further costs to the employer. It highlights four potential threats to remaining employees: trust, job satisfaction, motivation, and stress. The paper provides several suggestions for mitigating these impacts, including communication to retain trust, acting ethically to ensure satisfied employees, seeking an understanding of employee perspectives to build employee motivation, and providing good planning along with training and development to reduce employee stress. INTRODUCTION Globalization provides organizations with more options than ever before. Business leaders are continuously encouraged to adapt, reevaluate, and strategically improve processes and approaches. Best practices are reinvented rapidly in attempt to keep up with market trends. The quest to recognize new methods for increasing revenue has become the inspiration for exploring new management techniques and strategies. One such rising trend in the advent of global markets is that of outsourcing. Common purposes for outsourcing include improvements...

Words: 5411 - Pages: 22

Free Essay

Qualcomm Telecom Strategy

...Why did Bharti outsource its network operations? Bharti was facing a challenge – the customer base was growing explosively (100% per year) but it was not able to keep up with the pace of the market growth. Bharti had challenges with management time, capital costs, and human resources. 1. Faster time to market: There was huge delay between the time when Bharti needed additional capacity and when that additional capacity could be up/running. Bharti was spending from six months to a year in the process of planning, tendering, purchasing, and installing. This took a lot of time from Bharti’s management team too and did not allow them to focus other important priorities in the company. 2. Scalability: Bharti was facing scalability issues both in its IT function and network function. 3. Human resources scarcity: Given the rapid growth in the industry, Bharti was finding it more and more difficult to hire and retain people. It was facing intense competition from other telecom providers as well are other multi-national companies to hire engineers. 4. Lean and predictable cost model: With the rapid changes in technology and also in the requirements for network capacity, Bharti was having a very unpredictable cost model. Instead of huge capital assets on the balance sheet and capital expenditures, Bharti wanted operating expenses which went hand-in-hand with the pace of its growth. 5. Capital Expenditures: With industry consolidation, the focus was switching from having...

Words: 1115 - Pages: 5

Free Essay

How Are You

...Demographic Complementarities and Outsourcing: Implications for India By: Mukul G. Asher Professor, LKY School of Public Policy National University of Singapore e-mail: sppasher@nus.edu.sg and Research Scholar Department of Economics National University of Singapore e-mail: amarendu@nus.edu.sg Amarendu Nandy May 2006 Draft – Not to be cited without permission The authors would like to thank anonymous referees, Sanjeev Sanyal, Amlan Roy, Anantha Nageswaran and R. Swaminathan for their useful comments. The usual caveat applies. _______________ This is a longer version of the paper prepared for IMRC 2006 conference on Global Competitiveness through Outsourcing: Implications for Services & Manufacturing, Indian Institute of Management (IIM), Bangalore, July 13-15, 2006. Abstract This paper analyses the implications of differing global demographic trends for India’s competitiveness in outsourcing and offshoring. It also briefly notes the implications of differing demographic trends among the Indian states. The paper argues that demographic complementarities with high-income countries provide India with one-time opportunity to sustain its growth rate and occupy all segments of global outsourcing and offshoring activities. India has used the labor cost advantage to gain reasonable market share in these activities. It however faces serious internal and external challenges in sustaining its international competitiveness, particularly with respect to labor cost....

Words: 9196 - Pages: 37

Premium Essay

The Impact of Participative Management on Employee Performance (a Case Study of Annamco).

...Perceived Impact of Outsourcing on Organizational Performance Dean Elmuti, Eastern Illinois University Introduction In todays world of ever increasing competition, organizations are forced to look for new ways to generate value. The world has embraced the phenomenon of outsourcing and companies have adopted its principles to help them expand into other markets (Bender 1999). Strategic management of outsourcing is perhaps the most powerful tool in management, and outsourcing of innovation is its frontier (Quinn 2000). Outsourcing is a management strategy by which an organization delegates major, non-core functions to specialized and efficient service providers, or as Corbett (1999). President of Michael F. Corbett and Associates asserts, Outsourcing is nothing less than the wholesale restructuring the corporation around our core competencies and outside relationships. The traditional outsourcing emphasis on tactical benefits like cost reduction (for example, cheaper labor cost in low-cost countries), have more recently been replaced by productivity, flexibility, speed and innovation in developing business applications, and access to new technologies and skills (Greer, Youngblood, and Gary 1999; Bacon 1999). The market for providers of outsourced services of all types is growing rapidly. In 1996, American firms spent over $100 billion in outsourced business activities (Casale and Overton 1997). Other estimates place the total U.S. market for outsourcing at more than $300...

Words: 5391 - Pages: 22

Premium Essay

Impact of Outsourcing in Improving Productivity in Modern Organizational

...Impact of Outsourcing in improving productivity in modern Organizational Introduction In today’s world of ever increasing competition, organizations are forced to look for new ways to generate value. The world has embraced the phenomenon of outsourcing and companies have adopted its principles to help them expand into other markets (Bender 1999). Strategic management of outsourcing is perhaps the most powerful tool in management, and outsourcing of innovation is its frontier (Quinn 2000). Outsourcing is a management strategy by which an organization delegates major, non-core functions to specialized and efficient service providers, or as Corbett (1999). President of Michael F. Corbett and Associates asserts, Outsourcing is nothing less than the wholesale restructuring the corporation around our core competencies and outside relationships. The traditional outsourcing emphasis on tactical benefits like cost reduction (for example, cheaper labor cost in low-cost countries), have more recently been replaced by productivity, flexibility, speed and innovation in developing business applications, and access to new technologies and skills (Greer, Youngblood, and Gary 1999; Bacon 1999). The market for providers of outsourced services of all types is growing rapidly. In 1996, American firms spent over $100 billion in outsourced business activities (Casale and Overton 1997). Other estimates place the total U.S. market for outsourcing at more than $300 billion by the year 2001 (Dun and...

Words: 4012 - Pages: 17

Premium Essay

Role of Ict in Flattening World

...2 ICTs AND GLOBAL WORKING IN A NON-FLAT WORLD Geoff Walsham Judge Business School University of Cambridge Cambridge, U.K. Abstract This paper rejects the hypothesis of Thomas Friedman that ICT-enabled globalization is driving us toward a flat world. Instead, it is argued that the world remains uneven, full of seams, culturally heterogeneous, locally specific, inequitable, not well-integrated and constantly changing. This argument is supported by an analysis of three areas of ICT-enabled global working, namely global software outsourcing, global IS roll-out, and global virtual teams. The paper then builds on these analyses to put forward an agenda for future IS research on ICTs and global working based on three research themes: identity and cross-cultural working; globalization, localization and standardization; and power, knowledge, and control. The paper concludes that the area of ICTs and global working offers the IS field a major research opportunity to make a significant contribution to our understanding of a set of crucial issues in our more globalized world. Flat world, globalization, global software outsourcing, global IS roll-out, global virtual teams, IS research agenda, identity, cross-cultural working, standardization, power, knowledge, control Keywords 1 INTRODUCTION The changes taking place in the global economy, including those in the burgeoning services component, are the subject of much debate by a wide range of commentators including journalists, practitioners...

Words: 6849 - Pages: 28

Free Essay

Procurement Is an Integral Part of Resource-Based View of an Organization

...increasingly   widespread   practice   among   organizations   and   is   today   of   strategic   importance   that   attract   great   interest   from   scholars   in   the   literature.   The   primary   purpose   of   the   paper   is   to   contribute   with   a   review   of   leading   studies   that   analyze   procurement   from   the   resource-­‐based   view   of   the   organization.   The   paper   begins   by   setting   out   the   business   environment   of   procurement   and   then   presents   the   development   and   propensity  of  procurement.  This  is  followed  by  a  review  of  principal  works  and   differences  of  perspectives  of  resource-­‐based  view.  The  next  section  contains  an   analysis   of   the   relationship   between   procurement   and   resource-­‐based   theory   and  discusses  empirical  works  on  outsourcing  that  address  outsourcing  from  the   resource-­‐based   view.   The   studies   are   classified   into   two   categories:   those   studying  the  propensity  to  procure  and  those  studying  the  relationship  between   procurement   decision...

Words: 5448 - Pages: 22

Premium Essay

Facts About Outsourcing

...Running head: FACTS ABOUT OUTSOURCING 1 The Facts about Outsourcing Lawrence Smith Professor Barron Columbia College FACTS ABOUT OUTSOURCING 2 Abstract Globally, businesses have undergone unprecedented changes because of technology, the internet, and improved educational systems around the world. There are so many moving parts to having a successful business; nowadays, many organizations are outsourcing their non-core activities to external agents. Outsourcing is becoming an increasingly accepted practice for both small and large businesses of today. Outsourcing has quietly grown into a standard operating procedure for many organizations. This rising use of outsourcing represents a paradigm shift in the way companies conduct business. In today’s business environment, every company is looking for ways to reduce costs. Many are now turning to outsourcing as a weapon in their cost-cutting arsenal. But outsourcing is about more than shrinking budgets and reducing headcount. This paper will explain the term outsourcing and address why organizations prefer to outsource some of its functions in today’s business environment. Also, discussed in this paper will be the advantages and disadvantages of the outsourcing process and its rewards and risks towards the organization. FACTS ABOUT OUTSOURCING 3 The Facts about Outsourcing The word outsourcing could be described as the contractual relationship with a specialized outside service provider...

Words: 3013 - Pages: 13

Premium Essay

Boeing

...What Went Wrong At Boeing? My article, The Boeing Debacle: Seven Lessons That Every CEO Must Learn, elicited spirited conversation. Several commentators noted that, in addition to the general lessons, Boeing made specific errors in the way it handled outsourcing and offshoring. Let’s take a closer look at those specifics. Boeing enthusiastically embraced outsourcing, both locally and internationally, as a way of lowering costs and accelerating development. The approach was intended to“reduce the 787′s development time from six to four years and development cost from $10 to $6 billion.” The end result was the opposite. The project is billions of dollars over budget and three years behind schedule. “We spent a lot more money,” Jim Albaugh, Chief of Commercial Airplanes at Boeing, explained in January 2011, “in trying to recover than we ever would have spent if we’d tried to keep the key technologies closer to home.” The right goal: add value for customers Let’s start with what Boeing did right. After losing market share to Airbus (owned by EADS) in the late 1990s, Boeing could have decided to focus on reducing the costs (and the selling prices) of its existing aircraft. That would have led inexorably to corporate death. Instead Boeing decided— commendably—to innovate with a new aircraft that would generate revenues by creating value for customers. First, Boeing aimed to improve their travel experience for the ultimate customers, the passengers. As compared...

Words: 2228 - Pages: 9

Premium Essay

Italian Quality

...Italian Quality: Campagnolo Bicycle Components Introduction Campagnolo is renowned for producing some of the most innovative, highest quality, and best performing bicycle components available today. They also provide a benchmark for original design as evidenced by winning the prestigious Compasso d’Oro award from the Associazone Design Italiano and has been recognized by the Wall Street Journal as one of the most prominent sports brands in the world. ‘This reputation has been earned not only through its countless racing successes, but also by virtue of the attention given to quality and to service that sets this company apart from all others.’ ("Focus," 2011, para. 6) Tullio Campagnolo, an amateur bicycle racer who was frustrated with current technology to change gearing on his bicycle, founded Campagnolo S.r.l in Vicenza, Italy in 1933. At the time, changing gears required the rider to dismount, remove the rear wheel and then flipping the rear wheel around so a different sized cog on the opposite side of rear wheel could be used, then reattach the wheel to the bicycle frame, and finally remount the bicycle and resume the race. This required tools and a bit of time off the bicycle to complete as derailleurs and quick releases had not yet been invented. Tullio Campagnolo spent three years designing, perfecting, and producing what has become one of the ubiquitous components on a modern bicycle – the quick release skewer. ‘The company soon expanded, focusing on the three...

Words: 2940 - Pages: 12