Outsourcing Advantages And Disadvantages Essay

Outsourcing Advantages And Disadvantages Essay-35
If the work is sent overseas there are many things that can save the business money.Work sent overseas is usually sent to countries much less developed that the United States.This results in lower costs, greater productivity, and increases in profits.

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The next advantage would be that the business can focus on things like creating newer, better products and selling them.

This is much easier when they are not doing certain parts of the production process, because they can have people who normally, would be doing things with the factories, help with new designs and the marketing of these designs.

Outsourcing can provide some significant benefits for companies.

Advantages of outsourcing include: In the end, all of these advantages tend to lead to the possibility of a very efficient and streamlined firm that focuses on doing what it does best and outsourcing activities that others do better.

This means that there are less laws and regulations about production.

The most notable difference is what the workers are paid.As a member, you'll also get unlimited access to over 79,000 lessons in math, English, science, history, and more.Plus, get practice tests, quizzes, and personalized coaching to help you succeed.A different way of outsourcing would be closing their U. Factories and moving them to other countries, such as China or India.There are a few different reasons as to why a business would outsource, but the main reason is to save money so the product can be sold for cheaper.The companies that perform the work are usually located in developing countries.Benefits of outsourcing include lower labor costs, less strict regulations, flexibility, reduced overhead, and the ability for the home office to focus on what it does best while letting others do the more low-level work.You'll save over 80% on labor costs related to manufacturing.You'll have to pay an additional amount of money for the shipping of components from various suppliers and for the transport of the completed products back to the States, but you will still save quite a substantial amount of money.Now that they do not have to look over the production process as well they are putting all their effort into design and marketing.Apple is doing the same thing with their hardware for their electronics (Pearlstine).


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