Outsourcing Paper

Outsourcing Paper - HP and IBM Outsourcing Nadege Pluviose...

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HP and IBM Outsourcing Nadege Pluviose David Lum Fariha Ibrahim
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Executive Summary In the competitive world of business, it is important to keep up with evolving technologies as well as advancements. Specifically, supply chain in procurement has transformed and now focuses on its outsourcing. Large companies such as International Business Machines and Hewlett-Packard have transformed their business by outsourcing their technological operations, human resources, logistics, as well as their customer services and manufacturing of products. This allows the companies to reap advantages to their business processes but also have trade-offs that can hinder their organization. These organizations are discovering a great deal of benefits while working with people and different organizations around the world. Nonetheless, along with the benefits comes a great deal of obstacles that the company faces, some of which include language barriers as well as the time and effort put into training. However, ultimately outsourcing has impacting large corporations such as these in a very positive manner at present, but these benefits might wear out in the future. Despite being cost-effective, outsourcing leads to an improvement in quality, services, as well as overall performance. With every positive there’s a negative and the same goes for outsourcing. Though companies are pleased with the decreases in cost and improvements in quality, consumers are dissatisfied with the loss of jobs in their home countries as well as the call centers being sent abroad. Additionally, outsourcing companies face many difficulties both internationally and domestically. This paper is an examination of both the positive and negative perspectives of outsourcing, the various aspects of businesses sent abroad, and the affects it has on the countries who host outsourcing, employees of both domestic and foreign countries, the businesses or companies, and their consumers.
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Purpose The purpose of this paper is to explore how technological companies use outsourcing to adapt to a growing global market of employees, and how outsourcing is used as a way to help the companies become more efficient and effective in relation to its competitors. Also it looks at the various advantages and disadvantages, whether internally or externally, and tangibles or intangibles. Then being able to justify outsourcing while providing a certain level of service, whether below above or at the average, to customers. It also examines the developing countries that receive the outsourcing and how it is both detrimental and helpful to its growth. For developed countries or companies that take on the outsourcing, it shows how the cooperation can help both parties do business better. Therefore, it gives a broad overview of all the different parties involved in outsourcing, how outsourcing works for different parties, and how all of them are affected by outsourcing Situation On June 24, 2004, presidential challenger John Kerry said that the United States “is
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This note was uploaded on 05/23/2008 for the course SCM 406W taught by Professor Dawnrussell during the Fall '08 term at Penn State.

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Outsourcing Paper - HP and IBM Outsourcing Nadege Pluviose...

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