When the standards are not meet then IBM can penalize Fidelity and that normally equates to withholding money. When the company itself maintains these operations there are no incentives to create cost savings because they feel safe and comfortable knowing that their job doesn't necessarily rely on productivity. I would equate this to the old Soviet Union and communism, if you take away the incentive to work hard and be productive then you are stuck with a system that may meet your needs but can quickly become stagnate. Not that the employees in the HR department at IBM have given up but it may not always be clear to them that they play a role in the companies profitability. Now that I have briefly looked at cost savings, the second area that I want to look at is improved services.
You may be thinking how can simply changing who is performing the function improve the service provided? Looking at it from simple terms like that the answer is it can't but outsourcing is a little more in-depth than it may appear on the surface. First lets take a look at IBM and what are they in the business to produce. From what I know about the company they are known for producing business solutions and computers. Why then would anyone feel that they could perform operations like human resource with proficiency? The answer is that they are not experts. They hire individuals with HR degrees or promote from within the company but on more occasions than not they end up with individuals that do not always have the experience necessary to operate an efficient department. Employees in these situations tend to become more of a generalist than a specialist. In other words individuals could be tasked to write position descriptions and track workman's compensation claims. Generalizing like this does not allow them to become an expert in either area. All functions are currently being accomplished at IBM cut question still remains; can it be done better and more efficiently? By outsourcing the human resource function IBM will be turning over the function to a company whose specializes in the facets that make up the human resource function.
Outsourcing is an essential part of this idea. ... Everyone should be influenced by outsourcing. ... Outsourcing does both to the United States. ... Outsourcing is about efficiency. ... Experiencing hidden costs is a huge outsourcing risk. ...
Next, several financial issues can make outsourcing appealing. ... THE BENEFITS FROM OUTSOURCING Outsourcing has identified numerous potential benefits. ... THE PROCESS OF OUTSOURCING There are many ways to manage IT outsourcing since every company has different culture, strategy, structure, people, and process. ... However, I"m here going to use Xerox's outsourcing process. ... THE PROBEMS IN OUTSOURCING Many outsourcing contracts are structured for very long periods in a world of fast-moving technical and business change. ...
Nowadays, many organisation are outsourcing their non- core activities to an external agents. ... One should emphasis that outsourcing is an issue that is not specific to distribution. ... Globalisation is another aspect which has impact upon increasing outsourcing. ... Another risk outsourcing is the impact of outsourcing on those currently responsible for management of the function is fundamental. ... Outsourcing now commonly includes asset transfers. ...
One should emphasis that outsourcing is an issue that is not specific to distribution. ... There are different reasons for organisations outsourcing their distribution function. ... Globalisation is another aspect which has impact upon increasing outsourcing. ... Another risk outsourcing is the impact of outsourcing on those currently responsible for management of the function is fundamental. ... Outsourcing now commonly includes asset transfers. ...
Mike Johnson (1997) maintains outsourcing isn't a new idea. ... Outsourcing has fostered the concept ofcore? ... Outsourcing is becoming increasingly important in a constantly changing economy. The Australian Outsourcing Summit 2000 focused on this importance, and on the emergence of outsourcing as a powerful tool for transforming organisations and driving innovation (Corbett 2000). ... their organisations, have championed the concept of outsourcing (Klepper 1998). ...
The massive move to outsourcing presents a series of new challenges for organisations, both public and private. ... Several arguments can be made about the reduction of costs for the corporation under outsourcing. ... Another facet of outsourcing is a perceived mitigation of responsibility for IS in the enterprise. ... In the classic outsourcing environment, the executive level of a corporation and an outsourcing company agree to split the corporation's personnel into two groups. ... Executives should be aware that and outsourcing provider will attempt to develop contracts most f...
Discussions are also made on the risks involved in outsourcing. ... The two main types of outsourcing are Information technology (IT) Outsourcing and Business Process Outsourcing (BPO). ... Why outsourcing Outsourcing is an increasing attractive business option because overall, companies tend to outsource to alleviate administrative burdens and focus on strategic areas. ... That's good news about outsourcing. ... Another major risk in outsourcing is Loss of proprietary information. ...
Is global outsourcing an opportunity or threat? ... The airline companies losing money had nothing to do with outsourcing. ... It is funny how people are just now making an issue out of outsourcing, when outsourcing has been going on for the last 40 years. ... Outsourcing effectively promotes trading between global markets. ... Outsourcing enhances the quality of lives for poor countries. ...
So does this mean that outsourcing white-collared jobs will in the long term have the same effect as did outsourcing blue-collar jobs? ... (Outsourcing Jobs: Is it bad? ... I believe outsourcing to be good. ... Sources -Outsourcing Jobs: Is it bad? ... -Outsourcing: The Word on the Hill Business Week. ...
