0203 588 5889

Discuss your needs with a Consultant today

Effects of Outsourcing Companies Positions to Low Cost Countries Part 3

 

outsourcing-companies-dupoint

Inside The Outsourcing Debate: How DuPont Benefited from Outsourcing to China:

When we began looking at the debate surrounding outsourcing companies, we came across DuPont, which has outsourced its project of creating online database of fabrics to China. The report published in Outsourcing Asia's website said that by outsourcing to China the company was able to create a 24/7 operation and complete the project before schedule. The report also pointed out why the company had selected China as its destination and also talks about China's future as outsourcing destination for themselves as well as other companies.

How US Government Can Benefit From Outsourcing

Looking at the example of DuPont, where outsourcing helped companies such as DuPont to complete a project in time and also saved costs, we decided to look at how outsourcing might help the government. We came across a report on the US government's IT challenge and how outsourcing can be of help in Outsourcing Asia's website. The report said that, in the year 2005, 50 percent of the federal government's 70,000 IT workers would become eligible for retirement, according to a 1999 study. Also, the Government is IT legacy systems have also aged. So even if young people join the companies’ work force they are not trained in the old system. They have to be trained, which means increase in cost and expenses for Government. This gap has opened doors to the suppliers to offer outsourcing as a solution to the problem. The report mentioned that many Unions and Government workers are against outsourcing because they fear that it will raise unemployment in USA. Although there is a general fear of outsourcing among the public, we believe that if we are able to create a mutually beneficial outsourcing relationship between the two parties and show the benefits to the people, they will begin to feel positive about it.

 

  • Creating a Mutually Beneficial Outsourcing Relationship:

    The report titled "Creating a Win-Win Culture" in Outsourcing Journal talks about QinetiQ which was reaching the end of an existing outsourcing contract and realized the need to have a single source solution to provide a wide range of services and also reduce its total cost for IT services. In the year 2003, the company signed a contract with Accenture to provide broad range of applications; hardware and data centre services, as well as purchasing and program management.

To achieve early savings, the two companies bought into a structure and effective governance along with establishing good relationship at all levels at both the organizations. They were able to exceed the savings target in the first year of their partnership with the help of open communication, continuous innovation and win-win based solutions. Looking at the example of QinetiQ and Accenture we can say that good outsourcing relationships can create a win-win culture, which can benefit both sides. More and more companies are trying to copy the success of these two companies.

Having discussed about the positive side of outsourcing companies, the benefits it can offer to the business and the Government, we now turn our discussion to the negative side of outsourcing namely declining satisfaction among the outsourcing clients, security risks, social effects and public opposition. Declining satisfaction among outsourcing clients Report on declining satisfaction among outsourcing clients published on ZDnet talks about Diamond Cluster International's study, which found out that the number of buyers satisfied from their offshoring provider has dropped from 79% to 62%. Also the number of buyers terminating their offshoring contracts prematurely has doubled and reached 51%.

 

Effects of Outsourcing Companies Positions to Low Cost Countries Part 1...Read More
Effects of Outsourcing Companies Positions to Low Cost Countries Part 2...Read More
Effects of Outsourcing Companies Positions to Low Cost Countries Part 4...Read More
Effects of Outsourcing Companies Positions to Low Cost Countries Part 5...Read More
Effects of Outsourcing Companies Positions to Low Cost Countries Part 6...Read More
Effects of Outsourcing Companies Positions to Low Cost Countries Part 7...Read More
Effects of Outsourcing Companies Positions to Low Cost Countries Part 8...Read More

 

it-outsourcing-web-developer it-outsourcing-data-entry it-outsourcing-smm
it-outsourcing-call-centers it-outsourcing-internet-marketing it-outsourcing-seo

 

 

Back Office Fields IT Fields General Fields

Telemarketing
Book Keeping
Data Entry
Virtual Assistant
Transcripting
Call Center Agents
Email Chat and Support
Help Desk
Human Resources
Proof Reading

C++
SQL
Vb.net
Web Design
C#
Asp.net
Website Developer
Java
I.T Support
Dreamweaver

Marketing
SEO Internet Accounting
Social Networking
Blogging & Forums
PPC Internet Marketers
Technical Support
Financial Analyst
Advertising
and many more...
Please enquire

 

it-outsourcing-get-started