Q 27 urgent please answer fast
Dear Student,
Outsourcing is an agreement between two companies to take over the responsibility of a certain part of business.It is a way of entrusting the business processes to some of the other countries.
Need for outsourcing:
Outsourcing has made life easier and less cumbersome and business can focus more on their core and prime activities.
1.Cost effective: Skilled and proficient labour available in developed countries are expensive due to their minimum wage policy. Outsourcing a part of business to developing countries like India where skilled labour force is available at lower wages.
2.More focus on core activities: The business can focus more on its prime and core activities by outsourcing the back end and less important activities.
3.Risk Sharing: When one takes all the responsibilities of a business activities the whole risk lies upon them. In this way, a part of risk is shared between the companies
4. Saves investment infrastructure and technology: The outsourced partner takes the initiative to invest on technology and infrastructure required which saves the business capital for core activities.
5.Improves customer services: By relying on the better quality of labour force, improves the clientele and ensures customer satisfaction.
Therefore, the need for better quality of labours at lower wages and more focus on the core activities for the growth and development of business inculcates the need for outsourcing.
Regards,
Outsourcing is an agreement between two companies to take over the responsibility of a certain part of business.It is a way of entrusting the business processes to some of the other countries.
Need for outsourcing:
Outsourcing has made life easier and less cumbersome and business can focus more on their core and prime activities.
1.Cost effective: Skilled and proficient labour available in developed countries are expensive due to their minimum wage policy. Outsourcing a part of business to developing countries like India where skilled labour force is available at lower wages.
2.More focus on core activities: The business can focus more on its prime and core activities by outsourcing the back end and less important activities.
3.Risk Sharing: When one takes all the responsibilities of a business activities the whole risk lies upon them. In this way, a part of risk is shared between the companies
4. Saves investment infrastructure and technology: The outsourced partner takes the initiative to invest on technology and infrastructure required which saves the business capital for core activities.
5.Improves customer services: By relying on the better quality of labour force, improves the clientele and ensures customer satisfaction.
Therefore, the need for better quality of labours at lower wages and more focus on the core activities for the growth and development of business inculcates the need for outsourcing.
Regards,