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muralikrishnan
1

To all Out sourching is modern concept practicied by the mgt. and they are known or unknowning applied in business life. which process or area or function can be utlised under this concept. murali
From India, Madras
leolingham2000
260

OUTSOURCING
OUTSOURCING could cover many aspects of the business.
The corporate strategy would dictate which aspects should
be outsourced.
HR
-recruitment
-payroll
-training / development
-hr planning
-change management
etc etc
SUPPLY CHAIN
-procurement
-warehousing
-logistics
-order processing/ servicing
etc etc
MARKETING
-advertising
-media sourcing
-marketing research
etc etc
PRODUCT MANAGEMENT
-product development
-R& D
etc etc
SALES
-sales contractors
-merchandising
etc etc
DISTRIBUTION.
-distributors
etc
ACCOUNTING
-account keeping
-auditing
etc
IT
-data processing
-IT procurement
etc etc
SO MANY ASPECTS OF THE BUSINESS CAN BE OUTSOURCED,
SUBJECT TO THE CORPORATE STRATEGY
regards
LEO LINGHAM

From India, Mumbai
Ekta Sharma
6

I have some write up on outsourcing. may be it helps you.

OUTSOURCING

Human resources are the most critical assets of any organization as the organization's success lies in their hands. But in order to ensure that its employees remain satisfied, the company has to have a specialized human resources department that most of times proves to be a costly affair. That is why most companies today; decide to outsource their human resources management functions to offshore destinations

Meaning

Outsourcing is the delegation of tasks or jobs from internal production to an external entity (such as a subcontractor). Most recently, it has come to mean the elimination of native staff to staff overseas, where salaries are markedly lower. It became a popular buzzword in business and management in the 1990s

Generally outsourcing can be defined as – An organization entering into a contract with another organization to operate and manage one or more of its business processes.

KPMG (1996, p.1) talks about Business Process Outsourcing (BPO) as the "delegation of one or more business processes to an external provider, who then owns, manages and administers the selected process (es) based on defined and measurable performance metrics."

Two common types of outsourcing are Information Technology (IT) outsourcing and Business Process Outsourcing (BPO). BPO includes outsourcing related to accounting, human resources, benefits, payroll and finance functions and activities.

Most companies are looking to improve business performance through 3 critical drivers:
  • • Reduction in cost

    • Focus on core business operations for competitive advantage

    • Achieving superior customer satisfaction and use it as a competitive strategy

Overview

Outsourcing and out-tasking involve transferring a significant amount of management control to the supplier. Buying products from another entity is not outsourcing or out-tasking, but merely a vendor relationship. Likewise, buying services from a provider is not necessarily outsourcing or out-tasking. Outsourcing always involves a considerable degree of two-way information exchange, co-ordination, and trust.

The concept started with Ross Perot when he founded Electronic Data Systems in 1962. EDS would tell a prospective client, "You are familiar with designing, manufacturing and selling furniture, but we're familiar with managing information technology. We can sell you the information technology you need, and you pay us monthly for the service with a minimum commitment of two to ten years."

Organizations that deliver such services feel that outsourcing requires the turning over of management responsibility for running a segment of business. In theory, this business segment should not be mission-critical, but practice often dictates otherwise. Outsourcing business is characterized by expertise not inherent to the core of the client organization.

A related term is out-tasking: turning over a narrowly-defined segment of business to another business, typically on an annual contract, or sometimes a shorter one. This usually involves continued direct or indirect management and decision-making by the client of the out-tasking business.

The International Context

With the rise of Globalization, many companies are turning to either off shoring or offshore outsourcing. Offshore outsourcing more and more takes the shape of Business Process Outsourcing, where whole business processes (such as support and development) are outsourced. The client is usually free to choose who provides the outsourced business processes, while stock markets press the company to do more for less. This requires that managers search out the cheapest sources they can find. In countries like India and China (primarily Bangalore in India), companies like IBM, Microsoft, Hewlett Packard, and Novell choose to get services from sub-contractors in these countries or move many development and support jobs there. Smaller businesses can also take advantage of freelancing on the Internet to get smaller projects done by offshore developers at minimum cost.

This practice became even more popular after the dot-com crash of the early 21st century. As many businesses struggled with cash-flow problems, many investors were leary in investing money in high-tech companies, which many felt were still vulnerable to the dot-com effect. Struggling to do more with less, companies looked for less expensive avenues of development and support. For the United States, India seemed like a perfect resource for these needs since most nationals spoke English—a side-effect of several decades of British colonial rule. A company can hire an engineer in India, for example, for US$10,000 a year where an equally qualified engineer in the U.S. could cost $60,000-$90,000 a year.

A side effect of this practice led to the domestic unemployability of thousands of high-tech professionals, many of whom were new college graduates. Many of these new graduates studied high-tech fields specifically because a few years earlier, they were told there was an earnest need for people with the skills they actively acquired. Many companies required their employees to train their off-shore replacements, after which they were downsized (laid off). In one unfortunate case, a Bank of America programmer committed suicide when forced to train his Indian replacement.

In practice, this trend has experienced mixed results. Some companies, which were required to hire off-shore talent by investors, reported communication barriers and high foreign personnel turnover rates. They would often ask for one thing, but be delivered a different item. A domestic correspondent may have dealt with a foreign counterpart for weeks, only to find he had left the previous day (with no notice) and was replaced with another individual, who would then need to be briefed on the current development and projects. Several companies also complained of the low quality of the work produced by Indian development teams.

Reaction by some US customers has also been negative. Many customers of Dell complained of an inability to effectively communicate with their support staff, which Dell outsourced to India, because of their heavy Indian accents. Due to negative customer reaction and negative publicity, Dell moved some of its tech phone support jobs back to the US, most notably for corporate customers, though they stated they still plan to augment their Indian staff.

Because of the outsourcing of many jobs from the United States to India, the prominence of Bangalore as a high-tech region has caused the rise of the term "Don't Get Bangalored" in American business. The term refers to loss of American jobs overseas. There are several US websites that sell "Don't Get Bangalored" T-shirts.

From India, Ahmadabad
ankitchaturvedi
393

Dear Friends, I am also attaching a Powerpoint Presentation on number of activities outsourced by HR (in present and also in future)..... Regards Ankit 09869851356
From India, Mumbai
Attached Files (Download Requires Membership)
File Type: ppt HR Presentation Ankit - Devang.ppt (836.0 KB, 1387 views)

ankitchaturvedi
393

Dear Murali, To answer our question i am attaching a pdf and ppt file..... I hope it answers your question.... Regards Ankit 09869851356
From India, Mumbai
Attached Files (Download Requires Membership)
File Type: pdf Trans2.pdf (62.0 KB, 234 views)

pranay-patel
Dear Friends Please share HR presentation
From India, Jalalpur
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