Question

In: Operations Management

1. One of the measures used to reduce the costs of expatriation was to outsource elements...

1. One of the measures used to reduce the costs of expatriation was to outsource elements of the administration function to external service providers. Please discuss the advantages and disadvantages of such policy?

Solutions

Expert Solution

Outsourcing elements to the external service provider is a situation in which company try to move out some of the function such as human resource etc to the external vendor or service providers.

Advantages of outsourcing elements of the administrative functions to external service providers are :

a. Expertise : Due to outsourcing, the company can hire the expert to do the work and focus only on the core business activities so that they can achieve the competitive advantage in the marketplace.

b. Cost saving : As outsourcing reduces the cost associated with the hiring, retaining the employees, office space expenses etc as the elements are outsourced to the external service provider and free up the resources of the company for other purposes.

Disadvantages of outsourcing elements of the administrative functions to external service providers are :

a. Security and legal compliance : Due to outsourcing the activities issues regarding protecting the important and confidential documents can be complicated while the issues regarding legal compliance can arise.

b. Quality control : As outsourcing provides less control over the process where external service provider takes care of the administrative function, due to which the quality control over the process can be difficult for company leading to disssatisfaction of employees and customers.


Related Solutions

1. One of the most commonly used measures of inflation is the Select one: consumer price...
1. One of the most commonly used measures of inflation is the Select one: consumer price index. inflation factor. fiscal policy. gross domestic product. 2. The means by which the Canadian government imposes taxes on individuals and corporations and the way it spends tax revenues is the Select one: bank policy. budget policy. taxation policy. fiscal policy. 3. If you were a supplier of a company selling goods on 30-day terms, you would be most concerned with ratios measuring Select...
Large international firms who seek to outsource some elements of their operations in other parts of...
Large international firms who seek to outsource some elements of their operations in other parts of the world are subject to risk because their supply chain chains can be disrupted. Economics Final Question
One Proportion . Nexium is a drug that can be used to reduce the acid produced...
One Proportion . Nexium is a drug that can be used to reduce the acid produced by the body and heal damage to the esophagus due to acid reflux. Suppose the manufacturer of Nexium claims that more than 94% of patients taking Nexium were healed within 8 weeks. In clinical trials, 213 of 224 patients suffering from acid reflux disease were healed after 8 weeks. Test the manufacturer’s claim at α=0.01 level of significance. State the conclusion. State the null...
Companies are continuously seeking ways to improve the quality of production and reduce costs. One of...
Companies are continuously seeking ways to improve the quality of production and reduce costs. One of the areas is to work with suppliers to improve the quality and reliability of parts and products shipped. In an article entitled "In Defense of Activity-Based Cost Management," Robert S. Kaplan says: An ABC model can play a major role in improving supplier relationships as well. These relationships must be a vital part of any quality and cycle-time improvement program. A key insight is...
1) what is the part of the accounting system that measures costs for the purposes of...
1) what is the part of the accounting system that measures costs for the purposes of management decision making and financtial reporting 2) what is one major factor causing changes in management accounting today?
Is it ethical for firms to outsource production to 3rd world countries with lower labor costs...
Is it ethical for firms to outsource production to 3rd world countries with lower labor costs where most of the population would not have employment otherwise? What about illegal immigrants who come to the U.S. to seek work?
Describe the approach used by managed care to reduce health care costs. Has it been affective...
Describe the approach used by managed care to reduce health care costs. Has it been affective at reducing costs? Has it reduced the percentage of GDP spent on medicine?
Inside vs Outside Recruiter Outsource recruitment of programmers costs $250,000 annually. Hiring an internal recruiter costs...
Inside vs Outside Recruiter Outsource recruitment of programmers costs $250,000 annually. Hiring an internal recruiter costs you $175,000 annually. Tax rate is 40%. You have to buy out his business for $150,000. What is the NPV and IRR over a 5 year period? WACC is 11%. If you can not meet his asking price, how much would you be willing to pay him in order to meet your cost of capital?
An article discusses methods to reduce transportation costs while satisfying demands. In one study, the percent...
An article discusses methods to reduce transportation costs while satisfying demands. In one study, the percent demand that is unmet (y) and the percent of vehicle capacity (x) needed to meet the expected demand were recorded for 15 different scenarios. The results are presented in the following table. x y 82 0.6 92 0 95 0.7 87 1.3 90 0.8 94 1.1 92 0.9 97 1.2 97 1.3 89 0.2 88 0.8 96 1.4 95 0.9 86 1.4 95 0.4...
Choose one of the disorders in the DSM-5. Identify 2 clinical measures that can be used...
Choose one of the disorders in the DSM-5. Identify 2 clinical measures that can be used as part of a psychiatric/clinical interview when evaluating for this disorder. For instance, there may be a clinical measure, such as the Beck Depression Inventory, that has been researched for it's effectiveness in assessing depression. You can find examples of clinical measures used for specific diagnoses at the end of each chapter in The Clinical Assessment Workbook by Pomeroy. They may also be called...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT