Outsourcing A Competitive Advantage Essay - 1427 Words

In analyzing the second reason listed for why outsourcing is used; ‘inability to attract the highest caliber of employees to job functions that may be peripheral to the organization’s core discipline’, companies employ a different kind of outsourcing tactic. This reason leads to offshore outsourcing solutions. If a company cannot attract high caliber domestic employees to job functions secondary to their main function then they seek help where labor may be less expensive and more efficient. Offshoring attracts much more criticism when it comes to outsourcing. When a business considers leveraging offshore outsourcing in order to gain a competitive advantage there are a few definitive reasons. Many of those reasons revolve around an inability to hire domestic labor for the required job as mentioned above. The U.S. has high living standards along with strict health regulations that don’t exist abroad. China’s lack of environmental standards is another d ifferentiating factor that gives their workforce a competitive advantage. As a result, China is able to keep their wages so low that it’s ultimately incomprehensible for business owners to justify not hiring there. China is one of our biggest labor competitors. The reason many US companies go to China for outsourcing is again, because of their workforce’s willingness to operate at low costs. Michael Zimmerman describes this as a disparity in worker â€Å"tolerance†. Where the low wages found in China are â€Å"far lower than U.S.Show MoreRelatedGaining Competitive Advantage Through Outsourcing8392 Words   |  34 PagesGaining competitive advantage through outsourcing Authors: Sarah Tagliapietra Peter Platan Ng Seow Li Ralph Schneider Executive Summary Today s escalating, competitive and demanding environment has forced players in the marketplace to be more efficient, to emphasize on a leaner organization and continuously innovate new procedures to keep ahead of competitors. Adding final consumer value to the product or service in the form of lower prices, quality and better service has become an essentialRead MoreEvaluation of the Competitive Advantage That Can Be Gained by Companies through IS/IT Outsourcing829 Words   |  4 Pagesmanagement. Third party to manage IT functions for the company. Outsourcing contract is part of the concept of a business process to a third party who has specific skills and services. 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This report discusses three main issues that ANZ Bank’s management may have to consider if it is to enhance strength and core competency. Customer value proposition Firstly, as ANZ Bank has stressed that ‘becomes a super regional bank’ is a core strategy objective (ANZ 2012), ANZ will have to consider the potential effect for customer value proposition as a result of recent outsourcing strategy. It has been pointed that the problemRead MoreThe Main Threats of IS/IT Outsourcing Essay535 Words   |  3 PagesCommonly use outsourcing and managed services for their company. Outsourcing of information technology is not new for those who work in the technology and banking sectors. Although this area is new on the IT areas, it is one that may be more prevalent in the workplace, especially when it comes to data security. This is because many banks do not have the expertise to gather all the information effectively. 2.1 Quality control In some cases, these organizations have to pay a high price for qualifiedRead MoreStrategic Outsourcing at Bharti Airtel Limited1532 Words   |  7 Pages(a). Problem Essay: The main problem Bharti Airtel Limited facing is â€Å"How to manage its capital expenditures for its operations and how to face the expected exponential growth and a competitive environment.† The challenges that the company is facing are 1. Keeping pace with expansion: Bharti’s customer base is growing at 100% per year. It has its mobile operations currently in 15 circles out of 25 in the country and its fixed line operations in 6 circles. So it is a huge challenge to keepRead MoreOutsourcing Of Aviation Maintenance Practices And The Effects Of Globalization1352 Words   |  6 Pages Outsourcing of Aviation Maintenance Practices and the Effects of Globalization Matthew Wilkerson Embry-Riddle Aeronautical University Worldwide May 16, 2016 â€Æ' Abstract Within the aviation industry outsourced maintenance practices have become increasingly more prevalent to maintain current assets. There is generally three processes currently being utilized by the airline industry: outsourcing specific maintenance needs, in-house operations, and lastly, a hybrid approach, which entails a combination