Question
In: Finance
what is the concept/technique/tool for determining which of a company's activity (s) that can be outsourced?...
what is the concept/technique/tool for determining which of a company's activity (s) that can be outsourced? Provide details
Solutions
Expert Solution
There should be various techniques and factors which should be taken into account, when it is to be decided whether to outsource a certain business or not-
A. Cost savings- Outsourcing is resulting into cost savings for the company, the company should be going ahead for the outsourcing decision
B. Confidential informations-if the business is highly complex and it is confidential in nature, then it should not outsource its activities to other companies because it will lead to leakage of various private informations
C. trustworthiness and communications are another factor which should be studied into before outsourcing a project to another company.
D.if there is minimal supervision which is required for that Activity, the company should go ahead and outsource activity, because it can be managed by the other company
E.outsourcing is resulting into the loss of control of the business then the company should be going against the decision of outsourcing
F. Resources and technology at low cost and effective completion of the project outsourcing can be also helpful in making a decision with favour to outsourcing.
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