Trend Analysis and Current Business Issues

Trend Analysis and Current Business Issues

NAME OF CLIENT

NAME OF PROFESSOR

COURSE

DATE OF SUBMISSION TO : OPERATIONS MANAGEMENT

FROM : HUMAN RESOURCE DEPARTMENT

RE : OUTSOURCING OF NON-CORE ACTIVITIES

Outsourcing is the contracting out of processes in productions or operations (Manning 2008 . It is interchangeably understood with offshoring . The latter is the transfer of business operations to another country for the purpose of cutting down on operational and production costs (Overby 2007 . In this age of globalization and competitiveness outsourcing has become so prevalent and different outsourcing

arrangements have emerged . There is a simple outsourcing arrangement whereby a company engages the services of a third party to fulfill specific requirements . There is also a multi-sourcing arrangement whereby several requirements of the company are sourced from different suppliers . A third outsourcing arrangement is strategic outsourcing . All other arrangements are combinations of these various types depending on the company 's requirements and strategic plans (Gibson 2006 . This is the utilization of third party service providers whereby the latter supply both labor and equipment necessary to accomplish the tasks required by the client . The ultimate end is to cut on cost and enjoy competitive advantage (Gareiss 2002

One criticism of outsourcing is the exposure to quality risks (Roehrig 2006 . HYPERLINK "http /en .wikipedia .org /wiki /Outsourcing " \l "cite_ref-19 " This was the basis why last year 's proposal to outsource some of our processes was not considered for fear that our company may be exposed to operational inefficiencies . It was argued , then , that our current...