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outsource (PowerPoint) by shitingting


Done By Sigourney Wright
Outsource/ Outsourcing
What is Outsource/ Outsourcing?

 Outsourcing is the act of one company contracting with
  another company to provide services that might otherwise be
  done by in-house employees.
 Often times tasks which are outsourced can be performed by
  by the company itself.
Types Of Outsourcing

 B.P.O (Business Process Outsourcing) : A particular process
  or task is outsourced. E.g. Payroll, B.P.O work can be office
  related or customer oriented such as answering calls or
  technical work.
 K.P.O (Knowledge Process Outsourcing) : This calls for higher
  involvement of the worker, the worker has to employ
  advanced levels of research, analytical and technical skills
  and have to make decisions of a higher order than B.P.O
 Offshore Outsourcing : Literally means outsourcing your
  activity to one who is not on your shore or beyond your shore.
Types Of Outsourcing Cont'd

 I.T.O (Information Technology Outsourcing) :This is the
  buying of Information Technology products or services
  that could be furnished in-house, from one or a variety of
  sources on the Internet.
 Manufacturing Outsourcing: This involves the physical
  moving/ transportation of the products from one place to
  another. The common manufacturing outsource process
  involves manufacturers outsourcing different processes from
  developed countries where the manufacturer is located in
  developing nations.
Example Of
This picture shows
how companies in
the USA seeking
services from
countries outside of
their country such
as China, India etc.
Reasons Why Companies Choose
 If A Company is looking to expand, Outsourcing is a cost-
  effective way to start building foundations in other
 Outsourcing allows companies to focus on other business
  issues while having other details taken care of by outside
 Outsourcing allows companies to reduce their turn around
  times (Time it takes to get a job done and deliver the
  output), by taking advantage of the time difference between
  countries. Thus, allowing firms to reduce time to market new
  products and improvements, beating rivals who do not use
Reasons Why Companies Choose
Outsourcing Cont'd
 Saving Labor Costs are perhaps the one of the most
  important reasons why companies opt to outsource some of
  their activities. The cost of labor in some developed
  countries is extremely expensive thus, creating a large
  expenses for employers. If the same jobs were done by
  persons of the same qualifications at a far lower price then it
  would definitely be advantageous.
 Firms around the world are desperately trying to make use if
  their in house talent pool. Expertise and experience are in
  short supply, but in high demand and are quite expensive .
  Outsourcing helps dissolve the dilemma and frees large pool
  of in house resources for other work.
Disadvantages Of Outsourcing

 Loss Of management control of business functions meaning
  that you may no longer be able to control operations and
  deliverables of activities that you outsource.
 Problems with quality can arise if outsourcing provider does
  not have proper processes and or he/ she is inexperienced in
  working in an outsourcing relationship.
 Not understanding the culture of the outsourcing provider
  and the location where you outsource may lead to poor
  communication and lower productivity.
Disadvantages of Outsourcing

 There is a risk of losing sensitive data and the loss of
  confidentiality. Therefore it is important to have a place to
  avoid data loss.
 If important functions are to be outsourced, an organization
  is mightily dependent on their outsourcing provider. Risks
  such as bankruptcy (A legal proceeding by which a person or
  company is unable to repay outstanding debts.), and financial
  loss cannot be controlled.
Effects Of Outsourcing On:
 A company is: Lowers costs in labor to achieve a greater
 The Country of the outsource provider : economic growth and
  the creation of of new industries in areas which have lacked
 The Country of the company's Origin : There are negative
  effects not hiring of local employees which can contribute to
  the country's unemployment rate, the closing of factories in
  home country to expand or move to less developed country.
  This is called "Shipping Jobs Overseas."
 In Some cases the company might choose to expand its
  operations to the less-developed country rather than expand
  in its home country.
The End !!!!!!
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