History and Background of Outsourcing Essay Example | Topics and Well Written Essays - 1000 words

History and Background of Outsourcing - Essay Example . Even though America and European countries are highly developed regions compared to the countries in the other parts of the world, these regions are facing immense manpower shortage in critical employment sectors. For example, in construction industry and healthcare industry, majority of the people working in these regions are from Asian countries. In other words, opportunities are more compared to the number of available manpower resources in developing countries. Thus, manpower cost is highly expensive in developed countries whereas in developing or underdeveloped countries manpower resources are more and hence the labor cost is cheap. For example, heavily populated countries such as India and China have surplus manpower resources whereas employment opportunities are less in these countries. Out sourcing helps developed countries to exploit the abundant cheap manpower resources in heavily populated countries so that they can reduce the prices of their commodities and compete effe ctively in international market. This paper analyses the history and background of outsourcing. History and background of outsourcing The evolution of Outsourcing can be attributed to globalization and liberalization. ... Keeping these points in mind, these countries developed and introduced the globalization policies. Even though countries like China watched these polices with suspicion, they also realised the opportunities quickly and embraced globalization. As industries grown, organizations started to look for opportunities in international market. Domestic markets were insufficient for some of the major organizations to sell their products during the second half of the twentieth century. Such organizations started to explore opportunities outside the domestic market and as a result of that competition started to increase in international market. Along with opportunities, these organizations faced lot of challenges also in international market. Some organizations were able to reduce the prices of their products considerably of the availability of cheap labour in their home country. For example, Chinese products are still causing major worries to international companies because of its cheaper price s. This is because of the fact that China has plenty of manpower resources and their labour cost is comparatively low. In the 1990s, as organizations began to focus more on cost-saving measures, they started to outsource those functions necessary to run a company but not related specifically to the core business. Managers contracted with emerging service companies to deliver accounting, human resources, data processing, internal mail distribution, security, plant maintenance, and the like as a matter of â€Å"good housekeeping†. Outsourcing components to affect cost savings in key functions is yet another stage as managers seek to improve their finances (Handfield, Ph.D, 2006) Even though the business process

Multinational Corporation Now and Then Research Paper

Multinational Corporation Now and Then - Research Paper Example A virtual team is therefore hard to manage because it sorts out things on its own. In fact, what is deemed as pivotal here is to have a better know-how of the headquarters which is leading the virtual team in the first place. The results have to be drawn up in such a way that there is a win-win relationship for both these parties. From an economic stance, it means that the funds are being allocated in the right direction as far as understanding the team progress realms are concerned. This is an important consideration because the economic implications suggest a great deal, and more so within the aegis of the MNCs today and in the times to come (Patnaik, 2011). Within the political sphere, this would mean that the team progress is being supervised by the most appropriate people possible. It will make sure that the concerned authorities would know beforehand how to get the job done and then measure and monitor the progress accordingly. This is something that decides the basis of the MN Cs in the present day and age and it will get more competitive in the times to follow. Monitoring the team progress by making use of technology is conducive for the Multinational Corporation (MNC) today and even tomorrow. This is because it allows the team to be consistently kept a check upon from a political, economic and technological stance. It has helped shape up the different dimensions of the business of a MNC by making use of varied pointers which assist in understanding the strengths and opportunities that lie within the team and which shall solve the quandaries of the organization in the long run (Briggs, 2011). This has been the case within most of the renowned businesses and MNCs of today and it will continue to be like this in the coming times as well. Monitoring the team progress is always a Herculean task but then again it has to start off from somewhere in entirety. When team progress is monitored using technology, this means that many a tasks are being handled proper ly. This also implies that the team progress knows where it is being headed, i.e. in the right direction. What is even more interesting to note is that the people responsible for making sure that the team progress remains supreme are the ones who remain answerable for all these tasks in the first place. The environment within the MNCs of today is such that there is a lot of competition for giving in the best possible efforts and hence the reason that team progress remains a much desired proposition. Also what is most significant under such domains is how well the team progress has been measured (Martins, 2011). If this team progress is understood to be the best possible yardstick for finding out future possibilities, then it would mean that the organization is doing something worthwhile and indeed the monitoring is being carried out in the most apt manner possible. Seldom are a few issues cropping up which destroy the basis of finding out the team progress and these need to be check ed upon time and again. There is a dire need to understand the basics behind evaluating and monitoring the team progress because it is the force upon which the sanity of the organizations rest upon. In essence, monitoring the team progress is fundamental towards understanding the dynamics of the MNCs.