SUMMARY
Outsourcing,
Benefits for Small Businesses
The article defines “outsourcing “ as “the practice of using outside firms to handle work normally performed within a company” (whether the comapany is big or small on their income). Usually the big businesses use outsouring to save money, while the small businesses use it because they can verly keep up with other debts, they also have to worry about: processing, accounting and distribution.
Truth is, it does not only help the small industries , it can be very useful. People assume that it saves money and that is it. They do not really take the time to considere the other advanteges that come along with outsourcing. By outsourcing you:
-Control capital costs ( mainly it avoids expenditures in the early stages of your business, which makes your firm attractive to the market.)
-Increases efficency (competitive advantage)
-Reduce labor costs ( you can focus your resources where they are needed the most)
-Start new proyects quickly (your company grows and develops faster with more income)
-Focus on your core business ( outsourcing helps you shift your focus)
-Level the playing field (it gives a competitive chance to the small firms vs. The big firms. )
-Reduce risk ( a better management of risks)
It’s not only about the cheaper stuff, all this advantages help the small firms “survive” the rocky start.
Source : The benefits of outsouring for small businesses , obtained on Feb. 1 2009 , http://www.allbusiness.com/human-resources/workforce-management-hiring/1084-1.html
BY: LAURA GARCÍA
Outsourcing, good or bad?
Chris M Evans (Storage Consultant) posted 4/19/2004
Summary: Well, basically the article says that Insourced companies have a certain focus on delivery quality within the restrains of the budget provided by other financial companies and this becomes a problem when the financial failure is high. On the other hand, Outsourced companies also look for a high quality of their services however they do have a big budget which let them work within the terms they need to. So this can lead companies to try working outside the contract looking for tight costs, which at the end of the day it can actually be a mistake because they will have to face extra and unexpected costs. In addition, the work environment isn’t very favorable because of the quality of the offices, PC equipment and so on.
Source : http://it.toolbox.com/blogs/storage-consultant/outsourcing-good-or-bad-748
BY. CARLA MILLÁN
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Eahm, personally I don’t think my opinion will be different from the others because I think it’s very obvious that Outsourcing has its pros and cons. I agree with the author of the article when he says that it is understandable that companies choose outsourcing as a way to solve certain financial and organization issues; but I also think that it jeopardizes the safety of the worker as well as the quality of the service in general.
ResponderEliminarby. Carla Millán
Este comentario ha sido eliminado por el autor.
ResponderEliminarCOMMENT :
ResponderEliminarI kinda agreed with Carla at first, you can't really say if its good or if its bad, but after doing my summary I dare say that I am not against outsourcing.
I think it is a very useful tool for both big and small firms. It is not like every firm is actually aware of the advantages it provides (Besides saving money of course) I simply do not see it as a "headache that simply can't be solved by internal re-organisation" :)
that is my comment :*
by: Laura García
waa sorry for not posting but I can't edit posts (I dunno why <.<) so I send my part to Barbara so she can post it D:
ResponderEliminarOk, back to the topic, I think that Outsourcing is a very intelligent way to have a "cheaper" customer service in a company, it can save lot of money, and is a good source of employment for those countries that are suffering from low-employment rate, like third class countries.
But it has its drawbacks too, as it is said, it can cut the bond between company-customer, so it can cause dissatisfaction from the customer, the company or both...
Well, as everything, Outsourcing have his pros and cons. Is a good way for companies to save money as everybody in the team, according to their investigation agreed, but a problem involving outsourcing is the lost of jobs for people in the US, because of the lower payment to people in other countries like India, people in america are losing their jobs or a propect for one.
ResponderEliminarhere is my article, for one reason i cant post in the blog
ResponderEliminarOutsourcing: Pros and Cons
In this article you can read different points of view about Outsourcing. On one hand, for companies this is a good way to save some bucks, for example the anual salary of an Indian (a person from India) hire starts about $6,000 US dollar, also the real state savings are lowered. But not always the interests of U.S. corporations are often the same as those of the country and its citizens. Lots of people lose their jobs, and more lose the prospect of job.
Alan Mar 4to "I"
Source: http://www.businessweek.com/debateroom/archives/2007/02/outsourcing_whe.html
I agree with Pepe. Outsourcing is a very intelligent way to have a “cheaper” customer service in a company and maybe yes, it is a good source of employment in third class countries. But speaking like the actually customer I have to say that the employment opportunities in other countries come last on the requirements list when buying a certain product or service. If it isn’t cheaper for me at least I want it to be easier and I’m not sure that calling Indonesia because of some PC issues it’s in fact easier. It’s obvious that outsourcing cut the bond between company and customer.
ResponderEliminarBy. Carla Millán
And again, I have to agree with Alan. Some get the chances while others lose them. Why would care about the job opportunities in some other country like India, when the one who’s providing about the 50% of Mexico’s capital is losing its own opportunities. It’s like we’re practically the forgotten state of US, if it affects them of course it would affect me. And that is reality.
ResponderEliminarBy. Carla Millán