sourcing service is a fundamental element in nearly every business today. As an ISO 9001:2008 certified organization, we apply rigorous security standards in outsporcing to insure the protection of our client's data.
Outsourcing is a common practice among both private and public organisations and is a major element of the business strategy. The process of outsourcing can be looked upon as a strategic move among businesses.This process would try and decrease the overall cost of maintaining or increasing product quality. It may also allow firms to focus their concentration towards core activities of the business. During the last three decades, researchers have supported this phenomenon as one of the most effective ways for cutting down costs. However, the overall impact of this approach remains an unexplained conundrum.
The ability to make successful outsourcing decisions depends on various factors and considerations. There are two forms of outsourcing decisions that form the basis for long-term or short-term benefits to the firm. These are as follow:
It is based upon a strategic decision of the firm, the firm decides if it wants to make or buy a type of product. If the decision is to buy the product or service then it closes the facilities that currently produce those products.This shows the importance of the strategic decision of closing down its production facilities, left with no other
option than trusting an external supplier for its production.
It is based on a tactical decision of the firm, the firm decides if it wants to make or buy a specific part to manufacture the product in-house. It is nearly possible that a series of tactical decisions may lead to a strategic outsourcing decision. A tactical decision is looked upon as an experimental stage of trial and errors in certain particular cases. The buyer-supplier relationship formed during a tactical decision is completely different to the one formed during the strategic decision-making process. A tactical outsourcing decision may always be perceived as short term association.