Outsourcing Is Becoming An Essential Success Factor

1370 Words Sep 23rd, 2015 6 Pages
Over the past decade or more, outsourcing is becoming an essential success factor. Many multinational organizations rely on outsourcing for a variety of products and services such as technology, customer support, automobile, clothes, telecommunication products and many more (Gottschalk, 2006). Outsourcing is an excellent process when it comes to cost advantage. Additionally, it provides organizations the time and workforce to focus on organization’s core business capabilities (Gottschalk, 2006).
Another field that has recently gained momentum is outsourcing for knowledge processes (Sen & Shiel, 2006). Furthermore, according to a report generated by Sen and Shiel (2006), “the global knowledge process outsourcing is expected to reach $ 17 billion by 2010” (p. 147). As business environments are becoming more competitive, likewise their consumers are becoming more demanding as well. In this case, trust and legal agreements are vital components for outsourcing knowledge management processes (Sen & Shiel, 2006). In addition, it is useful to establish a knowledge feedback system between the provider and its client (Sen & Shiel, 2006). Knowledge process outsourcing is likely to grow rapidly. There is no doubt that it contains more risk than business process outsourcing. However, its benefits to the organization in terms of providing knowledge skills and assets globally are also very high (Sen & Shiel, 2006).
Trans-Border Data flow associated with Knowledge Management
Now days, the…

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