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Details of Outsourcing Decisions

Good Essays
List as many details about outsourcing decisions as you can . include the type of of activity being outsourced , the size of the outsourcing being outsourcing and the type of company providing the outsourcing service.

Different companies or organization uses outsourcing by transferring portions of work to outside suppliers rather than completing it internally to reduce cost. Outsourcing is very effective if used properly and gives a company short term or long-term effect. Outsourcing is currently relatively popular with both profit-seeking and not-for-profit organizations. Outsourcing can depend on many factors. Today, some of the world’s largest companies and biggest employers are the product of this outsourcing trend: Sodexo in food service; IBM in information technology; Wackenhut, now known as G4S, in security services; UPS and FedEx in logistics; Foxconn and Lenovo in computer manufacturing. Instead of the Rouge plant, the new model of industrial organization has become Nike, which outsources the making of all of its shoes, clothing and sporting equipment so it can concentrate on design and marketing. Total number of U.S. jobs offshore outsourced in 2013 was 2,637,239 and most of them were in India and the job description was manufacturing.
Some factors they contribute while making outsourcing decisions are :
Cost benefit
Instead of doing some project or giving service by the company it can be cheaper to outsource which helps companies to save their money.
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