Outsourcing Flashcards
1
Q
Factor affect outsourcing 1
A
Wage rates
Lower labour cots
Lower prices or higher profit margins
2
Q
Factor affecting outsourcing 2
A
Quality/skills of labour force
Call centre
Literacy rates China
High costs if need training
3
Q
Factor affecting outsourcing 3
A
Infrastructure
Poor transportation - higher lead time
4
Q
Factor affecting outsourcing 4
A
Government restrictions
Lower levels of employee protection
Lower unit costs
5
Q
Judgement
A
Depends on nature of industry
Innovation and education more important than labour costs in high end jobs(pharmaceuticals)
6
Q
Define outsourcing
A
Passing a business process to a third party elsewhere
