Monday, October 25, 2010

6. Outsourcing

Admittedly, before taking Dr. Schwaz's class I assumed that outsourcing was synonymous with off-shoring.  As a person who always values U.S. manufactured goods over foreign made products, I did not support [what I thought was] outsourcing.   It turns out that I do support outsourcing and am not much for off-shoring.

Outsourcing is beneficial as it allows firms to concentrate more on their core competencies and less on task to which they are not specifically oriented.  For example, a law firm can outsource marketing and concentrate more on what they were organized to do... practice law.  There are obvious drawbacks to outsourcing (i.e. control, cost, etc...) but I believe that functions outside of a firms scope should be outsourced until that firm, through expansion efforts, is capable of incorporating those functions in to their operations and strategic goals.

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