Managerial Accounting- Final Project

Managerial Accounting- Final Project - Final Project Final...

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Final Project Final Project- Outsourcing April Rice BUS630: Managerial Accounting Isabel Wan September 12, 2011 1
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Final Project Final Project- Outsourcing Outsourcing has become a commonly used term. There are various reasons that companies outsource their jobs and the importance given to it will depend on the circumstances of each case. Typically, factors involved in the outsourcing advancement might be cost savings, focusing on core business, the faculty of accessibility to skills and technology, flexibility or accountability. However, the prominent advantage above all else seems to be the fact that outsourcing often saves money. Most companies providing outsourcing services are able to conduct the work for considerably less money, partially because they may not provide benefits to their workers and have fewer overhead expenses to worry about. The specialized company handling the outsourced work is often streamlined . It may often have world-class capabilities and access to new technology that a company couldn't afford to buy on their own. In addition, if a company is looking to expand, outsourcing is a cost-effective way to start building foundations in other countries. On the other hand, there also have been some disadvantages to outsourcing. One of these is that outsourcing often eliminates direct communication between a company and its clients. This prevents a company from building solid relationships with their customers, and often leads to dissatisfaction on one or both sides. Moreover, there is also the danger of not being able to control some aspects of the company, as outsourcing may lead to delaying communications and project implementation. As well, sensitive information is more vulnerable, and a company may become very dependent upon its outsource providers, which could lead to problems should the outsource provider back out on their contract suddenly. 2
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Final Project Outsourcing may prove highly beneficial for many companies yet it also has many drawbacks. This causes the hesitance of administrators to answer important questions if they might be in risk or what rewards they will receive when they outsource some parts of their companies. This paper will take a look at opportunities, challenges, and rewards in outsourcing, especially in offshore outsourcing and also help the administrators to evaluate potential risks or rewards before applying to outsourcing market. Americans today have much concern about the concept of outsourcing. Ron Hira and Anil Hira in there book Outsourcing America, pose the question “Who is right and why is there difference in opinion whether this is good for America?” Critics continue to argue that outsourcing has a negative impact on American jobs, the economy, national security and pose that should this be allowed to continue, a prosperous future for all Americans is dim. However, it is also profitable for all to view their complaints as objectively as possible because they would never mention the vast benefits that come
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Managerial Accounting- Final Project - Final Project Final...

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