Outsourcing SWOT Analysis: U.S Industry

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PICMET 2006 Proceedings, 9-13 July, Istanbul, Turkey (c) 2006 PICMET

Outsourcing SWOT Analysis for Some US Industry
Md B. Sarderl K.J. Rogersi, Edmund Prater2 'Department of Industrial and Manufacturing Systems Engineering, University of Texas at Arlington, Texas - 76019, USA 2Department of Information Systems & Management Science, University of Texas at Arlington, Texas - 76019, USA Abstract--Outsourcing is proven as a good idea for many firms that need to reduce operating costs and improve information technology operations. But it remains important for them to select the appropriate outsourcing activities. Many companies will be hurt by hastily following the herd down the outsourcing path without thoroughly evaluating the benefits
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Too much focus on these areas could take away from what they do best. The same can be said for Company One possible approach to identify areas for outsourcing is, once define capabilities; consider benchmarking your processes to the "best in class." You may find that you want to outsource or you may even determine that you can become an outsourcer. B. Decision To Outsourcing The decision to outsource should be based on two primary factors (After determining it is not a core competency): Will it add value to the customer and will it reduce the costs. If answer is affirmative, it might be a candidate for outsourcing. By outsourcing, Company "A" can add value to their customers by placing more focus on the service they provide. In particular, if Company "C" had to worry about performing their own billing and tax preparations, some aspect of their service might be diminished because of more time spent away from therapy. Also, should a mistake be made in billing or tax preparation because of a lack of know how, the business itself could suffer. Company "B", by outsourcing manufacturing and human resources, is able to focus their resources on the


Most of the time companies do cost comparison, which is sometime not comprehensive. It is wise for companies to do
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