The paper “ Effective Outsourcing Allows Companies to Focus on Their Core Business” is a motivating example of a case study on human resources. According to Douglas & Scott (2007) Outsourcing entails an organization determining that some of its activities can be implemented by another institution on behalf of the organization. Most of the outsourced activities are not core activities. It has become an essential option for various organizations and for many years companies have sought cheap labor and increased profit. Douglas & Scott (2007) states further that outsourcing is not at all times straightforward, it requires keen monitoring.
Contemporarily, companies are more pushed than before to confirm returns on investments when outsourced arrangements are complex and involve highly valued inter-related activities that project the long term comprehension of lasting reimbursement from outsourcing a challenge. Clearly businesses are facing a new challenge: a delivery system of outsourcing which is of high-value activities and that which demonstrates value over time across the entire business functions. Nonetheless, even with such expectations, a lot of client companies do not have ample information that can assist them in measuring and quantifying the returns on outsourcing investment. Outsourcing with added cost provides just expenses and less work a factor that cannot provide a favorable business growth environment, hence, cost-effective outsourcing is most favorable.
Before a company makes a decision to outsource some of its work, a survey should be conducted and market study to attain a better understanding of Return on Investments. Importance of outsourcingIan et al. (2009) state that some of the importance of outsourcing as indicated below: Focusing on Major Activities: In the period of rapid growth, companies experience expansion in their operations.
Such operations consume resources at the cost of core activities. Outsourcing such activities allow concentrating on core activities that are the pillar of the business without sacrificing quality in the production.
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