Explore BrainMass


Outsourcing is the process of contracting out to third parties the production of goods or services, or the undertaking of business processes that were typically done in-house. Outsourcing can refer to both domestic and foreign contracting.

When we think of outsourcing, we often thinking of offshoring. Offshoring is when a business contracts out or relocates business processes to foreign countries. These processes can be operational (such as the manufacturing of goods) or supporting (such as the provision of accounting services or after-sales customer support). Offshoring is usually driven by cheaper labour costs in foreign countries, such as Mexico, India and China.

Insourcing is the opposite of outsourcing and is a more recent term. Insourcing entails evaluating the goods and services that the firm purchases from third-parties and determining whether cost savings could come from producing the goods or services in-house.

Globalization and technology have been important drivers of outsourcing and offshoring. These factors have allowed companies to extend their supply chains to new places around the world. Outsourcing is often supported by shareholders when financial benefits exist, and managers recognize that outsourcing is an important cost minimization strategy in order for the firm to keep up with rivals. However, unions, workers and movements such as Occupy Wall Street are concerned that mass outsourcing is destroying middle class jobs in America. As a result, outsourcing is linked to important public policy considerations.

Johnson & Johnson Vision Care

Johnson & Johnson Vision Care, Inc. is a company committed to transforming the world's vision, bringing healthy vision to everyone, everywhere, every day, (JNJVC 2015). The company website states that their first responsibility is to meet the needs of their clients and everything they do must be of high quality. JJVC Website Sp

Organizational approaches to managing ethics

1. Briefly discuss the various organizational approaches to managing ethics within an IS? MUST be 200 words APA FORMAT 2. Describe how e-commerce begin and what made it successful. MUST be 200 words APA FORMAT 3. As a member of an IT staff, how can you use social media to support e-commerce? You can search business websi

Outsourcing and Offshoring

Outsourcing and offshoring are viable business strategies, yet can be controversial in the company and the community. What role, if any, does risk management play in assessing the cultural, ethical, and mitigating issues that arise when a company outsources overseas? Provide a current example.

Outsourcing IT Functions

One of the common IT acquisition alternatives is acquiring outsourcing services. Organizations are outsourcing many functions, including IT functions, to both domestic and international organizations. What are the two or three most important issues facing IT project managers in USA companies that rely heavily on outsourcing IT f

Outsourcing Information Systems: Advantages/Disadvantages

Outsourcing information systems functions can result in a reduction of costs when an organization uses a flexible workforce, such as to bring in contractors for the duration of a project. By using contractual workers, the organization typically is also spared from "employment" costs, such as benefits or lawsuits as the firm prov

Outsourcing: whether to stay with a manufacturer after ethics issues

Assume you are a manager of a large heavy equipment manufacturing company. Your company currently outsources the manufacturing of a specialized piece of equipment to a firm in another country. The outsourcing of this piece of equipment has saved your organization a considerable amount of money and has increased profits by 15%.

Outsourcing Cost Per Unit

ABC's production line of the Widget gadget has a fixed cost of $200,000 and the variable cost is $5.00 per unit. A. If the company sells the first 10,000 units at a price of $20 and then sells all additional units at $15 per unit, what is the break-even point? B. Suppose that the company is considering outsourcing this t

Call Centers: Turnover And Absenteeism

Call centers have always been known for high turnover and absenteeism. List five keys issue and problems with outsourcing and call centers. What possible solutions or alternative should be addressed from a human resource perspective?

Project Management: Resource Scheduling

1. How does resource scheduling tie to project priority? 2. How does resource scheduling reduce flexibility in managing projects? 3. Present six reasons scheduling resources is an important task. 4. How can outsourcing project work alleviate the three most common problems associated with multiproject resource scheduling? 5.

Beyond Blue: IBM Case Study

From the attached readings, can you provide some clearer assistance with the following: 1.What is IBM's corporate or multibusiness strategy for the twenty-first century, and how is it different from its long-standing strategy? 2.What does the case title "Beyond Blue" mean? Please provide any outside sources if applicable.

Outsourcing decisions

Kane company is considering outsourcing a key component. A reliable supplier has quoted a price of $64.50 per unit. The following costs of the component when manufactured in-house are expressed on a per unit basis: (a) What assumptions need to be made about the behavior of overhead costs for Kane in order to analyze the outso

Organization Issues and Solutions

Question: A local cable company, Zeron, has had a monopoly on cable services in the County. As a result, the number of customers has grown significantly. In order to keep up with the high call volumes, Zeron has outsourced several agent and customer service positions. There has been a high level of customer complaints over the p

Payroll Function and Reporting

1. What types of regulations requiring periodic reporting, both monetary and statistical, come along with the payroll function, and what are the reports required? 2. Is the payroll function best performed within a company, or is outsourcing a better approach to payroll processing? 3. What are the positives and negatives of bot

Off-shoring or outsourcing jobs

What are the ethical implications of off-shoring or outsourcing jobs when US unemployment is around 10 percent? How should a global manager approach this problem?

Trail Frames Chassis Case Study

Trail Frames Chassis (TFC) of Elkhart, Indiana, is a major manufacturer of chassis for the motor home and van markets. Two unemployed truck-manufacturing engineers founded TFC in 1976. Since then, the company has grown into one of the largest suppliers of chassis. In the past, TFC has produced only a pusher type of chassis, one

Integrated organization

Explain how new additional services can be seamlessly integrated into a service business organization and the possibilities of outsourcing or offshoring work globally. Include in this explanation, the connection to the operations strategy framework (business direction, offerings, resources, discriminators, competitive analys

International Business Question:1. Use the theories of international trade and investment to help explain Brazil's international information technology sector? 2. What recommendations would you give to the Brazilian government and its outsourcing industry in order to improve their prospects for success in building a strong international competitive position in the information technology outsourcing business?

1. Use the theories of international trade and investment to help explain Brazil's international information technology sector? 2. What recommendations would you give to the Brazilian government and its outsourcing industry in order to improve their prospects for success in building a strong international competitive position

Riverbend Software Support Administrators (RSSA), payback, NPV, IRR

Riverbend Software Support Administrators (RSSA) provides online and telephone help desk services. Because RSSA's labor costs have steadily increased, it is outsourcing its call center. RSSA's executive-level committee, who oversees the information systems (IS) function, selected a project development team to crease a system t

specific global trend

Identify and review a specific global trend that you see developing. How will this trend influence local business, and how should you make plans for it in your own career? Please provide references to support your position.

Difference between Offshoring and Partnering (7-1)

Introduction A recent report by Watson Wyatt (2006) found that offshoring may have positive effects on production costs and operational efficiency, but there is minimal evidence of positive effects on customer service, satisfaction, human resources costs, marketplace image, and home country morale. Of major interest in this u

Economic Indicators for Walmart

The most important resource for all firms is labor. In this SLP, we will look at the labor decisions of the firm. Please address the following: 1. Labor is an important factor of production for all firms. The most recent unemployment rate is estimated at 9% (January 2011). Economists have identified three types of unemploymen


Problem 1 Jason Kidwell is considering whether or not to acquire a local toy manufacturing company, Toys Things. The companys annual income statement for the last three years are as follows: 2006 2005 2004 revenues