Thursday, March 27, 2014
Economic Interactions and Flows
Outsourcing is one of the methods to raise up the economic flow in globalization era. Outsourcing means from the definition from Green Geography Site "Outsourcing refers to contracting work out to an external organization". Although outsourcing gives several benefits to a country but it requires a lot of risks which leads to negative consequences. First of all, benefits of outsourcing is cost advantage, companies deal to buy a products from 3rd class company with buying cheaper price. Second benefit is Focus on core competency, when a company uses outsourcing, it doesn't have to care the secondary product because it's handled by 3rd class company, and the main company is able to focus on its main product. Quality and capability, since the company focuses on its core product, the quality will be better than companies that don't use outsourcing technique. Last benefit of outsourcing is labor flexibility, when a company uses outsourcing, it takes a lot of workers because it needs to be done within 6~8 months, however, outsourcing provides flexibility so it doesn't have to worry about hiring and firing. However, the risks of outsourcing are wrong workers chosen who are not interested in the job, lack of knowledge, and sometimes relying to much on third class company which will lead to bad quality of a product. Among all, my question is, is it possible for third class company to get products from another third class company?
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Terry, I'm sorry but I don't quite understand your question. Could you please rephrase it and clarify?
ReplyDeleteSure Mr. Barnes my question was Is it possible for third party to let another third party to handle it?
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