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Manufacturing outsourcing, who does it, how do you do itMany manufacturers are spending the money on outsourcing to save money in the end.Manufacturing outsourcing involves, sharing management control with a group outside the company.Companies usually outsource things like: information technologies, human resources, facilities, customer support and call centers. Information Technologies- this part of the company deals with the computer and computer software's of the company.
Human Resources- this is the part of the company that hires employees.They keep employee records. They also offer extra job skills. Facilities- these are the buildings where the company resides and uses for business.A reality firm will often be helpful with this type of outsourcing. Customer Support and Call Center- this is a place that a customer will call if they need information about the company's product.This could even be a telemarketing place. Telemarketing is where people call people on the phone and try to sell a product. The whole idea of outsourcing is to cut over all costs.A company shares the functionality of their organizations with another organization.These connections can be national or international.Sometimes when the connection is international, one company will join with a company that is in a different country.This will help with labor costs, because is other countries they do not have laboring laws.This way the cost of an employee won't be so high, sometimes they will team with a country where the currency rate is undervalued. Today companies choose to outsource to keep leverage in a competitive market.Outsourcing also helps increase the quality of a product while also decreasing the cost.Sometimes quality will decrease because of the lowering of cost for production, but this will increase the productivity of the product, and in the long run benefit the economy.Other countries benefit from the outsourcing from the United States.When countries like China, India and the Philippines get outsourcing business the number of jobs available increases, pay increases and the quality of life increases.Many businesses consider outsourcing a superior business tactic. Some people believe that outsourcing is not a good idea.Yeah sure it provides jobs for people in the western countries that otherwise would not have a job.There is no security in those benefits.At any given point the people with power can shut down the facility.Then there goes the jobs for all the people who once benefited from the outsourcing.That is not the only problem.When you supply other people with information about your company and your customers there is a worry of security.In one situation an outsourced company had been steeling money for a customer with a fake name.The company was able to do this because it had customer information. This was just a brief explanation of what outsourcing is.Sometimes it will benefit your company and sometimes it won't.If you are considering outsourcing remember to talk with your team of advisors.Come up with the pros and cons of outsourcing.If it is in your budget it might be the best decision you make for your company.Also remember to trust the people you are bringing in to help you. |
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