(Brian 2003, p. 68)
Outsourcing can be defined as the process of transferring responsibilities of a specific business functions from an “employee group” to a “non-employee group.” simply it is the transfer of functions from their function center in the organization to a function center outside the organization. It is integrated in many business strategies due to it’s seemingly benefit of cutting down cost through economies of scale. One of the most important features of outsourcing is the transfer of control. The buyer or the non-employee group doest not retain the power to instruct the supplier or the company on how the task is to be performed.
Outsourcing differs from other forms of business control in that the company retains the power to dictate how it wants the whole process to be carried out. Both parties makes agreement on how the whole process will be carried out and what the process is supposed to achieve at the end of the exercise. (Thomas 1996, p. 15)
It is based on mutual agreement which may be carried out physically or through other medium of communication. Outsourcing has been taking place across continents with companies moving to areas with low labour laws in a bid to exploit the benefits of cost reduction. However the concept of outsourcing has been claimed as not efficient by many people though many companies has reportedly adopted the benefits they have seen in the process. This paper will look closely into the aspect of outsourcing, it benefits and whether companies which have adopted the concept have achieved the benefit. (Mitchell 2007, p. 23)
Many companies carry out outsourcing to meet the objectives that are drafted in its strategies. The motivation to outsource comes from the experience that a company had but the whole concept is implemented with an aim of achieving multiple benefits. At a glance most
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It has become a powerful option for companies which are focused on growth. It has become a famous practice due to its seeming cost reduction measures and enhancement of service and competences…
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