Topic > The practice of outsourcing - 1691

“The practice of outsourcing has developed rapidly in recent years and has moved from involving relatively peripheral activities such as catering and security, as more and more companies have learned to appreciate the role that it can play in strategy” (Philip Sadler & James C. Craig, 2003). Currently, outsourcing includes manufacturing, design, distribution, human resource management and information systems. Outsourcing occurs when a company decides to allow an external company to take responsibility for certain divisions of its business. A company may possibly choose to use an outsourcing company to modernize its work performance, to increase the efficiency and effectiveness of a division of its business activity or perhaps to enhance resources in that division of the company which would bring to increase production and output. However, the essential reason and condition is to make additional management support available to the company to improve cost effectiveness through the expertise of their overall operation. “The term “outsourcing” was first used in the 1980s and described the procurement of information systems (Espino-Rodríguez & Padrón-Robaina, 2006). Today the concept of outsourcing is no longer limited to information systems, but is known in combination with all the possible business functions that can be entrusted to an external supplier" (Espino-Rodríguez & Padrón-Robaina, 2006). Espino-Rodríguez & Padrón-Robaina, (2006) further defined outsourcing as “a strategic decision that involves the outsourcing of certain non-strategic activities or business processes necessary for the manufacture of goods or the provision of services… ... middle of the paper ......and we have outsourced the technical customer support function to specialists. While this makes good sense from a cost and differentiation perspective, it can also mean the loss of a critical point in the customer contract and an essential source of feedback. Another example is Dell, where great care is taken to ensure that the specialist is responsible for providing on-site technical support and maintenance, collecting and reporting to Dell all important data relating to product failures and other issues, in so that Dell can design and improve their products. In conclusion, outsourcing has changed the way businesses interact. If you do not understand the range of outsourcing options and evaluate their implications in a specific enterprise IT scenario, your outsourcing missions run a huge risk of not being successful.