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Published byVivien Anderson Modified over 9 years ago
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Management idea: Outsourcing 唐付静 41014306
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Definition of Outsourcing Outsourcing is the act of one company contracting with another company to provide services that might otherwise be performed by in-house employees. These jobs are handled by separate companies that specialize in each service.
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The main types of outsource Total outsourcing Partial Outsourcing Production outsourcing Sales Outsourcing RandD outsourcing HR Outsourcing Managed Service Integrality Function
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Advantages and Disadvantages Advantages: 1 、 It often saves money, 2 、 It allows the enterprise concentrate on core business while having the details taken care of by outside experts Disadvantages: 1 、 Overseas enterprise responsibility , 2 、 The problem of intellectual property 3 、 The problem of contractors’ loyalty
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Examples Apple makes most of its components outside America. Foxconn is one of its suppliers. Advantages: There are much cheaper labour force in China, so outsourcing can save much cost; There is more time left for Apple to focus on its core business and to do more research work, which do better to develop Apple’s competition. As a result, Apple gets a big success.
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