Task:
Outsourcing is a conscious abdication of selected value chain activities to external providers.
Outsourcing is when a company negotiates a contract with a third party to perform a specific function. When outsourcing a process or operation, it is vital to find a company or person that specializes in the task at hand.
Outsourcing follows external purchasing decisions, joint ventures, and strategic alliances that focus on organisational relocation.
Can be both
(1) in the home nation of the firm
(2) abroad, and entails an organisational restructuring of some activities.
WHY?
In some cases domestic outsourcing, despite being in high-wage nations, can be better than outsourcing the activity to an emerging country (and sometimes no more expensive) when flexibility and speed to market are more important than saving every penny.
Outsourcing is when a company negotiates a contract with a third party to perform a specific function. When outsourcing a process or operation, it is vital to find a company or person that specializes in the task at hand.
Outsourcing follows external purchasing decisions, joint ventures, and strategic alliances that focus on organisational relocation.
Can be both
(1) in the home nation of the firm
(2) abroad, and entails an organisational restructuring of some activities.
WHY?
In some cases domestic outsourcing, despite being in high-wage nations, can be better than outsourcing the activity to an emerging country (and sometimes no more expensive) when flexibility and speed to market are more important than saving every penny.
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