MGMT Outsourcing-1

MGMT Outsourcing-1 - Mark Foster Christopher Lam Giancarlo...

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Mark Foster Christopher Lam Giancarlo Morales Tom Valazak Outsourcing This paper discusses the growing business model of outsourcing along with its impacts on the global marketplace. Outsourcing is defined, and a history of the model is given. The positive and negative effects of outsourcing are then discussed in detail, especially in terms of communication. An explanation of exactly how outsourcing relates to our course textbook is then given, followed by a projected future of outsourcing in conclusion. I. Definition In recent years, the world of business has grown to unimagined proportions; and with this growth new ways of doing business have been introduced in the market. Since technology and telecommunications have become more widespread, they have eliminated the barriers that companies used to have when establishing communication with each other. These factors have made the outsourcing model possible. Outsourcing is a business model in which one company provides services for another company that could also be or usually have been provided in-house. For instance, Indiana University of Pennsylvania (IUP) outsources its translation services to Metlife. This means that although IUP could perform the task on its own, it has decided to hire the translation services from Metlife to get the same job done. Usually an entire department or process is outsourced. However, some companies only outsource a specific task of a process. Although most of the time the reasons for adopting the outsourcing model are monetary, there are many other positives as well as negatives that come with it. But how did outsourcing start? Also, whether outsourcing is beneficial or not will be analyzed throughout this research.
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II. The history of outsourcing Outsourcing is said to have emerged a few thousand years ago with the production and sales of food, tools and other household appliances. As soon as small communities and societies began to form, people with specialized professions began to trade with each other for goods and services. It can be said that each worker was outsourcing some activities to others. Research shows that even in the industrial age, a few thousand years later, very few companies outsourced any of their operations. Companies in the 1800s and 1900s were vertically integrated organizations, taking care of their own production, mining, and manufacturing from raw materials to finished goods as well as then shipping the goods to company owned retail outlets. These companies often handled their own taxes, employed their own lawyers, as well as designed and built their own buildings without outside assistance. This model does not apply to all companies during that time period, but it gives a general idea of the time. The history of outsourcing portrays that as onshore outsourcing continued manufacturing
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MGMT Outsourcing-1 - Mark Foster Christopher Lam Giancarlo...

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