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The Advantages and Disadvantages of Outsourcing

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Write a 2-3 page paper about outsourcing from the perspective of a multinational firm (Yes, this may be a hypothetical firm), be sure to answer the following questions:

1. What are the advantages of outsourcing?

2. What are the disadvantages of outsourcing?

Also, make sure to discuss why these are advantages and disadvantages and to whom.

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Solution Summary

This solution discusses the advantages and disadvantages of outsourcing from a business perspective in 550 words with three references.

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In recent times, outsourcing is becoming very much accepted. It pertains to the ?acquirement of a product or service rather than producing it?. It can also be interpreted as a transfer or delegation of day-to-day business process to an external service supplier. At present, outsourcing is generally used by every organization in one way or the other. Most of the IT companies which are functioning in quite a few nations are doing their work with the help of outsourcing and this can be understood with an example of Dell Computers (Rein gold, 2004).

Dell Computers which is a multinational firm has most of its troubleshooting call centers in India at present. This new concept of outsourcing is producing a lot of dislocations which are good for some people and on the other hand, abominable for other people. Most of the multinationals firms are going for outsourcing as in the year 2003, IBM decided to shift the jobs of almost 5,000 programmers to India and ...

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