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Outsourcing and Third Party Companies Essay

Assignment id 1009018
Discipline Arts Entertainment
Assignment type Essay
Words 2079
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Outsourcing relates to a firm contracting with a different firm to provide products or services that could otherwise be produced in house. The contracted third party provider manages their work and it is responsible for the achievement of the work assigned. Many organizations now outsource services like electronic mail providers, payroll, and customer care call center services. A firm contracts with a business which has specialized in production or supply of a specific service, in which in several instances the organization is situated overseas. Having looked at what is all about outsourcing it is crucial to remember that; a business outsources a job that it believes not to be the core business of the provider. An insurer for example outsources its own landscaping operations to firms that are specialists and experts in that endeavor. The support suppliers where jobs are outsourced are referred to as third parties (Sourcingmag.com 2011). To help a company make outsourcing choice, it should ask the following questions; following outsourcing, how will the firm be free to focus on its core action? Will the company’s efficiency be attained when the company outsources? Will outsourcing help the company gain a competitive position? Among other tactical concerns (Crown 2011). Outsourcing occurs in different businesses and also the most common feature, outsourcing of information technologies (ITO)and outsourcing of business processes (BPO), which encircles outsourcing of human source (HRO). ITO is at which a business firm outsources providers of computer technology from a third party company. BPO encircles HRO which relates to outsourcing of customer care call centres services in a third party rather than doing it on its own. Firms out...

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