The paper will discuss outsourcing and its implementation by companies as a cost-saving measure and as a means to achieve various other advantages. The discussion will be supported by multiple sources, which will be included in the APA format at the end of the paper. Outsourcing refers to delegating non-core operations from internal production to an external entity specializing in their management. The decision to outsource is made to lower company costs, focus on core competencies, and utilize global resources optimally. Many companies adopt outsourcing to concentrate on their primary work rather than support activities that are also essential. (Wikipedia, 2007)
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...tsourcing enables companies to focus on their core competencies while competent individuals handle other tasks. For instance, consider the value chain diagram below which reveals firm infrastructure and human resource management as support activities. Outsourcing can help minimize these activities and increase production focus.
Outsourcing support activities, such as the call center or human resource management work, would enable manufacturing companies to focus on their core activities. As these companies already face various complications during production, spending too much time on support activities could create an imbalance and hinder timely delivery to customers.
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