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Why Outsourcing?
Outsourcing is work
done for a company by another company or people
other than the original company's employees.
Outsourcing entails purchasing a product or
process from an outside supplier rather than
producing this product or process in-house.
The business that is outsourcing will train
outsourcing provider to form a supply chain
partnership.
Outsourcing is not
just a way to reduce costs; it is an essential
element for achieving business excellence.
Outsourcing enables an organization to focus
on the things it does best – its core
competencies. At the same time, through outsourcing
it can leverage the resources and expertise
of equally focused outside providers. The
combined effect is a powerful management tool
for competitive advantage, improved business
performance and operational transformation.
Why
Rechner?
Reduced
costs:
Economies of scale
will reduce costs.
Increased
flexibility:
Outsourcing converts
fixed costs (or relatively
fixed costs such as
people)
into
variable costs, giving
the firm greater financial
flexibility.
Downsizing:In
organizations that
must downsize, the
outsourcing vendor
will move surplus
people
to
other jobs serving
other companies. This
appears more humanistic,
since people may not
be laid off.
Better
access to technology:Equipment
vendors suggest that
outsourcing through
them
provides
customers with better
access to new technologies.
Stick
to the knitting:Outsourcing
leaves business managers
more time to focus
on the company's
main
lines of business.
Less
management distraction:Outsourcing
relieves top management
of having to worry
about
managing
another staff function.
Greater
competence:Outsourcing
vendors are more experienced
and competent than
internal
staff.
Cash
flow:
Outsourcing is a source
of near-term cash,
since assets may be
sold to the outsourcing