Question

Organizations can become involved internationally in a couple of different ways. One way is to seek cheaper sources of material or labor offshore, which is called offshoring or global outsourcing. Another way is to develop markets for products and services outside their home countries through strategies such as exporting and partnerships. Define and provide with real examples/real practices of outsourcing, exporting, and partnerships.

Answer 1

Outsourcing is a business practice in which services or job functions are farmed out to a third party. In information technology, an outsourcing initiative with a technology provider can involve a range of operations, from the entirety of the IT function to discrete, easily defined components, such as disaster recovery, network services, software development or QA testing.

Example: Business process outsourcing (BPO) is an overarching term for the outsourcing of a specific business process task, such as payroll. BPO is often divided into two categories: back-office BPO, which includes internal business functions such as billing or purchasing, and front-office BPO, which includes customer-related services such as marketing or tech support. Information technology outsourcing (ITO), therefore, is a subset of business process outsourcing.

While most business process outsourcing involves executing standardized processes for a company, knowledge process outsourcing (KPO) involves processes that demand advanced research and analytical, technical and decision-making skills such as pharmaceutical R&D or patent research

Exporting

Businesses that sell their goods and services to customers in other countries are exporting them – they are producing them in one country and shipping them to another. Exporting is one way that businesses can rapidly expand their potential market.

Companies export because it’s the easiest way to participate in global trade, it’s a less costly investment than the other entry strategies, and it’s much easier to simply stop exporting than it is to extricate oneself from the other entry modes.

An example of this would be directly selling computer parts to a computer manufacturing plant. Direct exporting requires market research to locate markets for the product, international distribution of the product, creating a link to the consumers, and collections.

Partnership

An agreement between a donor state and a beneficiary is also considered a bilateral partnership, as are agreements of trade. ... These partnerships occur directly between the partner organizations, and partners work towards a common goal.

For decades, nonprofit institutions (universities, NGO's, etc.) have engaged in an extensive array of partnership activities abroad. Examples of partnerships may include research collaborations, academic partnerships (such as study abroad or exchange programs), and government or charitable grant agreements.