Information systems outsourcing reasons and risks: review and evolution.
The impact of IT outsourcing on information systems success.
The evolution of shared services and outsourcing in human resource management.
The impact of culture on the relationship between governance and opportunism in outsourcing relationships
Does outsourcing really improve firm performance?
Comprehensive insight into supplier quality and the impact of quality strategies of suppliers on outsourcing decisions.
Outsourcing is considered as one of the important technique which is considered by many companies in the present era. By considering this method, the emphasis is given on the overall cost so that it can be reduced by transferring the functions of the company to the other party. The organizations outsource the overall services so that efficiency of the employees can be maintained. By focusing on this strategy, it has been examined that operating costs and also profits are achieved which impact on the growth of the company (Aubert, Kishore & Iriyama, 2015).
The functions are also outsourced so that it can be simple for the company to manage the entire activities. When the activities are outsourced it has been seen that overall level of satisfaction of the customers can be affected. There are any companies who are considering the outsourcing method as it can help to enhance the overall market share. In the paper the discussion will be made on the Hewlett Company who focuses on outsourcing the functions. This report will emphasize on the advantages and disadvantages related to outsourcing a function to the other company.
In this report the focus will be given on evaluating the advantages and disadvantages of the functions that are given by the company to the third party. The objective is to evaluate the advantages and disadvantages of Hewlett Company.
It has been investigated that outsourcing is one of the important activities that are considered by the company to manage the overall work. In this report, the Hewlett Company is selected in context to advantages and disadvantages of outsourcing. The report will also emphasize on the strategies that should be considered so that company can achieve success in the market.
According to Plugge & Bouwman 2017, outsourcing is considered as a technique which is considered by majority of the organizations in the present era. It has been seen that company take help from the other company so that activities can be managed and can be completed with efficiency. It is necessary for the company to focus on this technique as it can help to complete the activities in an effective manner. By focusing on online and offline medium, the operations can be outsourced easily. The involvement of the third party is seen and the activities are transferred to be completed on time. It is necessary for the company to consider this technique as it can help to achieve large market share.
Hewlett is considered as the biggest companies in the IT sector. Headquarter of the company is in Palo, California. The operations which take places in the organization are related to information technology and cloud programming. The company has also emphasized on outsourcing the functions to the third company so that it can be completed on time with efficiency (Dhar, 2012).
According to González, Gascó & Llopis 2016, the technique of outsourcing is considered as an internal process of the company and the company decides the third party to outsource the activities. The overall operations of the company are controlled by thee third party so that it can be easy to achieve positive outcome. It also emphasizes on minimizing the entire operational costs. There are many choices that can be taken into consideration so that work efficiency can be maintained. Hewlett emphasizes on transferring the operations to other company so that it can be easy to manage and also it reduce the workload of the company. Hewlett is one of the largest organizations that emphasizes on outsourcing the activities to the third party so that it can be easy to complete the activities on time with minimization of the operational cost. It can be investigated that when operations are transferred to the third party and if the third party does not complete it in a proper manner then it can give adverse impact on the growth of company.
According to Eggert, Böhm & Cramer 2017, the objective to outsource the activities to third party is related with maintain the overall service quality so that satisfaction level can be enhanced. It also impacts the opportunities which are concerned with employment in context to skills and experience. It is important to consider the strategies so that operations can take place smoothly. The focus should also be given on the strategies that can help the end users to manage the internal structure. Hewlett focuses on outsourcing the activities like human resource management, technical process and service management.
According to Rajaeian, Cater-Steel & Lane 2017, Outsourcing is considered as a function that can help to the company to grow in the competitive market. In the present era, there are companies who focus on outsourcing the activities so that it can be managed and completed with proper efficiency. The advantages that can be derived by outsourcing the activities to the other company are many like.
By outsourcing the function of the company it can be simple to minimize the entire operational cost. According to Gospel & Sako 2010, it has been analyzed that when activities are outsourced to the third party the company saves cost in context to salary expense, work expenses and also manufacturing expenses. If countries are developed then it has been evaluated that cost of giving the facilities is cheap in outside the countries. It also helps the company to attain the cost advantage and it gives impact on the overall growth of the company.
According to Handley & Angst 2015, by transferring the activities to the third party, it has been analyzed that company can also manage and consider different aspects which are beneficial to grow. When outsourcing of the activities are taken into consideration then it has been seen that resources in the business can be improved and also changes can be made in the entire function of the company. The organization focuses on manufacturing the hardware and the data is also given to the third party so that activities can be conducted in a proper manner.
According to Lahiri 2016, the activities which are outsourced help the other companies to have specialization in a particular sector. It is necessary for the employees to have proper knowledge and skills so that operations can take place in the right manner. This also helps the company to manage the entire operations of the company with efficiency.
According to Ramanathan & Krishnan 2015, there are many companies who rather than giving training to the employees of the latest technologies they focus on outsourcing the activities to the third party so that activities can be conducted with efficiency. It also helps the company in reducing the time and expense of the operations and also helps in achieving the overall competitive advantage.
According to Uluskan, Joines & Godfrey 2016, the function of outsourcing helps the company in maintaining the quality of the products or services which are offered in the market. The quality is maintained as activities are outsourced to third party that is beneficial to maintain efficiency in the workplace. The contract related to outsourcing helps the company to focus on maintaining the quality with customer’s satisfaction. It has been investigated that outsourcing of the operations can also help the workers to maintain efficiency towards the organizational activities. in context to Hewlett it has been seen that company implemented a proper structure in the organization that assist in accomplish entire objectives in an effective manner.
Sharing of risk
According to Oshri, Kotlarsky & Willcocks 2015, It has been examined that agreement in context to outsourcing can assist the company to share the risks of the organization with the third market. When the activities are outsourced then it has been seen that risk is transferred to the third party. It is the responsibility of the third party to maintain the quality of products and services which is given by the company. But if they are not able to complete the activities in an effective manner and also with proper efficiency then the outsourcing company can easily sue or third party have to compensate the loss faced by the company. This also assists the company to share the risks and also restrict the company to follow set rules and regulations so that quality can be maintained.
According to Wuyts, Rindfleisch & Citrin 2015, if quality of the products are maintained than it can be easy to enhance the satisfaction level of the customers. It has been analyzed that Hewlett focuses on implementing the policies so that it can be easy to maintain the quality of the services which are outsourced to the party. It is important to focus on the policies so that activities can be conducted in a right direction.
If there are many benefits then it has been examined that there are also disadvantages at the time of outsourcing the activities. It has been examined that outsourcing has increased by the companies and with this issues are also faced by the company.
Forfeiture of managerial control
According to Koo, Lee, Heng & Park 2017, it has been analyzed that when contract of outsourcing is given to the third party then with that the responsibilities are also transferred which is important to be followed. The organization has the ownership but the control related to management is transferred to the third party. It has been analyzed that if outsourcing company is not able to complete the activities according to the set principles then it can give adverse effect on the entire activities of the company. In context to Hewlett it has been seen that issue was faced in their data centers which is in California. Therefore, it is necessary to have control over the activities so that it can be simple to accomplish objectives and goals.
When the activities are outsourced of the company, it has been evaluated that company has to focus on rules and regulations of the countries in which the activities are conducted. According to Kerzner 2018, it has been analyzed that outsourcing contract emphasizes on the overall charges of the services but the organization has many expenses which are hidden. There are also various legal charges that focus on verification the agreement of outsourcing. It has been analyzed that change in the rules of the market off the particular country can affect the overall cost of the company as there are various rules and regulations that should be considered so that organization structure can be maintained.
Obstacle related to language
According to Gurung & Prater 2017, when the activities are outsourced it can affect the overall image and quality of the company. If the activity of one center is outsourced to the third party who is from different country then it can create an obstacle related to language and also customers can be not satisfied with the services of the company. The customers can feel frustrated at the time of contacting with the executive who is using a good accent. Hewlett outsource the operations to Singapore and there are customers who have different accent which can enhance the frustration level of the customers to understand.
It has been seen that there is a connection between the IT services which are outsourced and also improvisation of the function of business, it is important to have effective management system so that performance can be increased. In figure 1 the cities are reflected India and Brazil.
According to the research, it has been analyzed that there are benefits of outsourcing which have affected the various factors of the business.
By focusing on the entire report, it has been analyzed that there are companies who emphasizes on outsourcing the activities of the company. The advantages are many like reduction in cost, flexibility and also customer’s services enhancement. There are also many organizations that face the problems which are concerned to hidden cost, layoffs and risk quality. Therefore, outsourcing the activities has created a clear and proper guideline that assist in the entire process of outsourcing.
Aubert, B. A., Kishore, R., & Iriyama, A. (2015). Exploring and managing the “innovation through outsourcing” paradox. The Journal of Strategic Information Systems, 24(4), 255-269.
Dhar, S. (2012). From outsourcing to Cloud computing: evolution of IT services. Management Research Review, 35(8), 664-675.
Eggert, A., Böhm, E., & Cramer, C. (2017). Business service outsourcing in manufacturing firms: an event study. Journal of Service Management, 28(3), 476-498.
González, R., Gascó, J., & Llopis, J. (2016). Information systems outsourcing reasons and risks: review and evolution. Journal of Global Information Technology Management, 19(4), 223-249.
Gorla, N., & Somers, T. M. (2014). The impact of IT outsourcing on information systems success. Information & Management, 51(3), 320-335.
Gospel, H., & Sako, M. (2010). The unbundling of corporate functions: the evolution of shared services and outsourcing in human resource management. Industrial and Corporate Change, 19(5), 1367-1396.
Goyello. (2018). Outsourcing Companies . [Online] Goyello. Retrieved from: < https://blog.goyello.com/2010/11/17/tholons-top-100-outsourcing/ >
Gurung, A., & Prater, E. (2017). A research framework for the impact of cultural differences on IT outsourcing. In Global Sourcing of Services: Strategies, Issues and Challenges (pp. 49-82).
Handley, S. M., & Angst, C. M. (2015). The impact of culture on the relationship between governance and opportunism in outsourcing relationships. Strategic Management Journal, 36(9), 1412-1434.
Kerzner, H. (2018). Project management best practices: Achieving global excellence. John Wiley & Sons.
Lahiri, S. (2016). Does outsourcing really improve firm performance? Empirical evidence and research agenda. International Journal of Management Reviews, 18(4), 464-497.
Oshri, I., Kotlarsky, J., & Willcocks, L. P. (2015). The Handbook of Global Outsourcing and Offshoring 3rd Edition. Springer.
Plugge, A., & Bouwman, H. (2017, February). Understanding the Modularization of Business Services: The Maturity of Firms in Bundling Services. In International Workshop on Global Sourcing of Information Technology and Business Processes (pp. 65-80). Springer, Cham.
Rajaeian, M. M., Cater-Steel, A., & Lane, M. (2017). A systematic literature review and critical assessment of model-driven decision support for IT outsourcing. Decision Support Systems, 102, 42-56.
Ramanathan, L., & Krishnan, S. (2015). An empirical investigation into the adoption of open source software in Information Technology outsourcing organizations. Journal of Systems and Information Technology, 17(2), 167-192.
Uluskan, M., Joines, J. A., & Godfrey, A. B. (2016). Comprehensive insight into supplier quality and the impact of quality strategies of suppliers on outsourcing decisions. Supply Chain Management: An International Journal, 21(1), 92-102.
Wuyts, S., Rindfleisch, A., & Citrin, A. (2015). Outsourcing customer support: The role of provider customer focus. Journal of Operations Management, 35, 40-55.
Koo, Y., Lee, J. N., Heng, C. S., & Park, J. (2017). Effect of multi-vendor outsourcing on organizational learning: A social relation perspective. Information & Management, 54(3), 396-413.
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2020). Assignment Requirements Structure1. Retrieved from https://myassignmenthelp.com/free-samples/hi6008-assignment-requirements-structure1.
"Assignment Requirements Structure1." My Assignment Help, 2020, https://myassignmenthelp.com/free-samples/hi6008-assignment-requirements-structure1.
My Assignment Help (2020) Assignment Requirements Structure1 [Online]. Available from: https://myassignmenthelp.com/free-samples/hi6008-assignment-requirements-structure1
[Accessed 01 April 2020].
My Assignment Help. 'Assignment Requirements Structure1' (My Assignment Help, 2020) <https://myassignmenthelp.com/free-samples/hi6008-assignment-requirements-structure1> accessed 01 April 2020.
My Assignment Help. Assignment Requirements Structure1 [Internet]. My Assignment Help. 2020 [cited 01 April 2020]. Available from: https://myassignmenthelp.com/free-samples/hi6008-assignment-requirements-structure1.
Our specially curated generators have been revolutionary in helping the students cite resources (books, online articles, journals, websites, etc.). All you have to do is visit our site and provide the details related to the resource. If you have Chicago referencing style requirements, Chicago reference generator will provide you with the final layout. Similarly, the Vancouver reference generator or Harvard reference generator will yield corresponding results. The reference generator related to APA is ideal for APA assignments. Thus, whatever be your referencing needs, our online citation generator tool is here to cover you.
Answer: Introduction For understanding the key decisions of operations manager, I shall assume the identity of operations manager of an ecommerce retailer selling customized phone covers. The table below shows the ten key decisions that I will have to take in this position. Decision Factor Decision Design of products and services We shall be selling customized mobile covers by setting up an online retail store on S...Read More
Answer: Introduction The report throws light on analysing the different kinds of crisis management activities which are required to be undertaken by the Flower Airlines in managing the situation of crash that has taken place. The initial reaction of the CEO after the crash along with the different manners in which the crisis can be handled are required to be identified which will be helpful in treating the situation appropriately without any di...Read More
Answer: Introduction Agribusiness is a major sector in Australia with contributing a substantial amount in the international investment and gross income of Australia. Dr. Corran McLachlan, who was one of New Zealand’s richest men, founded the A2 Milk Company in 2000. The organization was formerly known as A2 Corporation Limited that commercializes intellectual property associated with a2 milk products such as infant formula. It was later ...Read More
Answer: Comparison and Justification for the choice of best Voyage charter The overall recommendation for the widest emission has been made by consideration of the best combination of required expenses and Break-Even freight rate required to perform this voyage. Therefore, it is analysed from both options which rate is computed as less based on the given factors. As per the given background the overall for Task a it can be inferred that MV Ku...Read More
Answer: Introduction The massive damage in Aloha airlines can be considered as one of the infamous disaster in the aviation industry. In the year 1988 on 28th April the Aloha Airlines flight 243 had been scheduled by Aloha Airlines in between the Honolulu and Hilo. Due to the explosive decompression in the flight, such massive damage had been occurred. In this incident, 65 passengers as well as crew members have got injured. After the loss of...Read More
Just share your requirements and get customized solutions on time.
Our writers make sure that all orders are submitted, prior to the deadline.
Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.
Feel free to contact our assignment writing services any time via phone, email or live chat.
Our writers can provide you professional writing assistance on any subject at any level.
Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.
Get all your documents checked for plagiarism or duplicacy with us.
Get different kinds of essays typed in minutes with clicks.
Calculate your semester grades and cumulative GPa with our GPA Calculator.
Balance any chemical equation in minutes just by entering the formula.
Calculate the number of words and number of pages of all your academic documents.
Our Mission Client Satisfaction
I got a 100 on my paper. Thank you for answer on such a short notice. It was a stiff price overall they responded and had me finish before my deadline!!!
My assignment you did was really excellent and I really like it. I will use this one again. thanks
this is the final assignment for this subject and did everything well and got a D grade for the subject.
this is the final group assignment and needed to upload on Turnitin. I could do my part really well and got a hd for this subject. great work guys.