Outsourcing : A Company Can Save The Cost

1514 WordsJan 23, 20167 Pages
Outsourcing: A company can save the cost and create a value if any of the value chain activity can be performed outside the company otherwise performed in-house. Companies withdraw from a few noncore activities and rely upon the outside company to supply a part of the product or services that is not a company 's core competency. Outsourcing can increase competitiveness any time when the same activity performed better at a lower cost, these activities are not a core capabilities of the company, it reduces time and speeds up the process, allow organizational flexibility, and allows concentration on the core business competencies that the company does best. Normally, before making any strategic move, a cost-benefit analysis is performed to decide, if off-shore, on-shore or service contract to another firm is necessary and the best move from a strategy perspective. Off-shore outsourcing adds a complex foreign supplier, global trade into the equation and requires consideration of a global strategy as part of the generic strategy. Website Strategy: The internet and mobile technology have changed the way we live and it is an important channel for a customer to interact in the retail industry. It is necessary for companies to have a web presence to help build a market position to complement its strategic options. Companies use web presence as a distribution channel, use as a marketing channel to reach customers, make product information available electronically, and sell products
Open Document