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Outsourcing for a Multinational Firm

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Write a 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?

Discuss why these are advantages and disadvantages and to whom.

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Solution Summary

The solution discusses the advantages and disadvantages of outsourcing for a multinational firm. References are included.

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Nieves Health Care, Inc. is a leading health care organization providing services pertaining to the management and treatment of illness such as preservation of medical, dental and other health services. All the goods and services that are created and designed to promote health is what a health care is all about and Nieves Health Care, Inc. is just one of the multinational health care organizations that perform these services.

Nieves Health Care, Inc. is one of the wide array of health care organizations that has decided to selectively outsource their technology services. In today's rapid global growth, it is hard to for companies to do everything by themselves alone. There are many factors to be considered as potential heavy up front capital investments and long-term commitment might be overlooked. The technological demands of the present times, we have to keep face with the fast-changing technological demands, the revenue losses that are related to under-investment have to be dealt with, and the IT services need to be constantly enhanced. There is a need to leverage redundancy and security for it does not contribute to the strategic value in the IT department of a company.

The following are some of the reasons why Nieves Health Care, Inc. has decided to outsource a few of their services to an IT outsourcing company:

1. Outsourcing IT infrastructure operations is cost saving. The economies of scale must exist before considering outsourcing. There must be an economic advantage to the majority so that outsourcing can pay off. In the case of Nieves Health Care Inc., since it is a health care company, it ...

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