Case Study 7-1: Primus Consulting Group

Another benefit to a company that outsource is the ability for them to scale up for a project without increasing the number of permanent staff. The capability for the company to send work to India allows them to use them for specific tasks. Once that task is complete, the job is over. They will not have all the extra workers on staff. The company is essentially hiring a

The fourth advantage to outsourcing is that it can help develop internal staff. As I stated in the advantage above, outsourcing projects help meet performance peaks, but it can also assist in completing projects that are nearing the end of its requirements. What this does is allow the company staff to focus on new initiatives that

There are many benefits of outsourcing that companies and countries seize to take advantage of. The biggest benefit is reduced costs of infrastructure and labor. According to the OneNeck IT Solutions, “The attraction to overseas outsourcing has traditionally been reduced costs. By moving support services to India or China, for

Outsourcing is that a product or service provided by outside vendors which but was previously provided internally or that could be provided internally(Pearlson, 2001).It is an effective approach for information system implement in a business organization but a risky one.

For big corporations outsourcing gain the overall advantage because they are able to increase their economic output while drastically decreasing their overhead expenses. The saving the companies incur is then passed on to the consumer who can afford to buy multiple products at a lower price. They are able to acquire access a wider range of the world's resource and intelligence. Because big corporations are able to offer competitive wages to foreign workers they are able to hire the best talent within country. This also frees up jobs in America, by allocating tedious jobs overseas big corporations can better utilize talents in their home countries. By doing this they can focus on more important corporate related tasks. The benefits of outsourcing in low wage countries is that it raises their standard of living. Foreign workers are often payed twice as much than what could be offered by jobs within their country. Foreign worker also gain valuable skill sets from international companies. These skill sets increases their marketability within the workforce. The skill sets they develop are transferable and gives them a competitive

To take on these competitive challenges, corporations are outsourcing to specialized companies that can use their capability to increase the efficiency of an outsourced function (Burt, 2010). Outsourcing has become so common that it is listed as one of the five basic forms of collaboration among supply chain participants (Bowersox, 2010). However, over the past several years there has been a surge of outsourcing taking place in the United States and abroad and this trend has added a new dimension to procurement (Burt, 2010). Today, procurement is used as a competitive weapon that differentiates successful, highly profitable companies from others within the same commerce. (Simchi, Kaminski, Simchi,

All in all there are several different pros and cons to outsourcing or off shoring business to other countries. It looks and seems that saving money for companies is the most important and

Outsourcing to India will add to many benefits to help reducing cost. Out shoring some jobs across the world holds a lower wage unlike the United States where the minimum wage is around 8 dollars. The operating cost in India is much cheaper than it is here in America. All the resources that will be needed for Attorney on Call will be exceptionally cheaper as well as the training cost to train the new members for this business.

The decision to choose a product or service from an external supplier or vendor is referred to as outsourcing. The decision to outsource a product or service is a significant one, and the Project Manager must take into consideration additional costs, changes to schedule, deliverables, and value. Furthermore, there are also other decision-making factors, such as the need for control over the quality, proprietary technology, time constraints, and lack of expertise or limited capabilities of the external supplier (Project Management Institute, 2013). From a financial and scheduling standpoint, the decision is straightforward, as the success of the project is dependent on resources available through outsourcing. Since the project is dependent on an outside entity, the Project Manager must follow prudent measures to control the process. The first step in controlling the process is to determine the appropriate acquisition process. One reliable process is known as Performance-Based Acquisition (PBA). Performance Based Acquisition (PBA) is a results-oriented contracting method that focuses on outputs, and is written so that payment or contract extension is based on measurable performance. The main benefit of using PBA is to minimize costs, while improving vendor performance (NIGP, 2012). It is paramount that diligent research and evaluation methods are used to ensure that the best available vendor is

Once a clear set of instructions can be created for a job which allows quality to be easily and rigorously monitored, lower cost labor can be taught how to perform that job function. These lower cost options may include computer automation, robots, or low cost labor in foreign countries. This makes many forms of procedural based jobs good candidates for outsourcing. Specialization has allowed “personal outsourcing” in which a whole department is not outsourced, but just the specific tasks that could be classified as tedious or time-consuming and may provide a better benefit if the person who is meant to work on the task focuses on other higher-valued activities, while the outsourced contractor takes responsibility over the lower-value given task. This paves way for levels in efficiency and effectiveness because though it might be more cost efficient to keep just the one employee, but it might not be effective if the employee cannot meet posted deadlines due to the time needed to complete

Also the inferior cost of operation and labour in India makes it an eye-catching location for companies to outsource to. According to (Kathleen et.al 2014 p.6) “outsourcing is not always the answer” companies and organizations should approach outsourcing claims with significant care and attention. Some disadvantages can be problems with quality if the outsourcing provider is untested or doesn’t have accurate processes. There is also a problem of loss of management control, when you have organizations in more than one country, Human Resource must focus on treating resources as global and not country specific, with economic expansion in India this company needs to make sure it has the organizational capability to operate in India (Banfield & Kay 2012 p.201). Whilst outsourcing, top management should demonstrate leadership in the arrangement of commitment, guarantee and participation in the process. Communication also plays a vital role in the management process whilst outsourcing, it’s important to keep employees up to date of your aims and intentions in a precise and suitable fashion. This gives employees a greater sense of trust and reliability in their manager. Managers should also make an effort to involve their employees and ask for their opinions on outsourcing, with more involvement in the development employees are more likely to consent

When outsourcing is done for the right reasons will actually help your company grow and save money and hence the advantages;

Textile and apparel companies see many advantages to outsourcing their manufacturing. The number one reason a company usually outsources is to lower their costs. Outsourcing allows companies to obtain a technically skilled, multilingual, and inexpensive workforce. A company can hire an engineer in India for $10,000 a year, whereas in the United States an engineer would cost $60,000 '' 90,000 a year.[8] This is a huge cost saving that can lead to huge profits.

Outsourcing refers to hiring an outside, independent firm to perform a business function that internal employees might otherwise perform. Many organizations outsource jobs to specialized service companies, which frequently operate abroad. The outsourcing trend stands to continue; the latest wave of outsourcing impacts the information technology field. IT outsourcing includes data center operations, desktop and help desk support, software development, e-commerce outsourcing, software applications services, network operations and disaster recovery.2

Improvement in the health / safety of the workers which will help to increase in productivity.