Study Guide No. 7 Flashcards
A business practice in which a company hires another company or an individual to perform tasks, handle operations or provide services that are either usually executed or had previously been done by the company’s own employees.
The business practice of hiring a party outside a company to perform services and create goods that traditionally performs in-house by the company’s own employees and staff.
Outsourcing
Rather than employing a fulltime staff, outsourcing provides flexible workforce who can work when needed and also decrease labor cost.
Labor cost
Allows business to cut down in other expenses.
Infrastructure and Material Costs
Entrusting non-central company function to experts elsewhere.
Efficiency
Allows all the attention and resources on more essential parts of the business.
Core business Function
Talks about on how we produce products.
Customer Satisfaction
Outsourcing partners may absorb any of the risk associated with departments.
Risk Management and Continuity
For international sales and marketing.
Globalization
Let you have short term and flexible contracts.
Flexibility
It give companies access to new resources and frees up resources that would otherwise be devoted to those backend function.
Resources
It allows business to focus its attention and energy on more central aspects of work.
Innovation
The most important benefit is that outsourcing of work allows one to get the work done at a very low cost and in a much more efficient way.
Cost-effective
Are equally important as cost saving. If an outsourcing vendor fails to deliver on time without quality work, any benefit of cost reduction will be negatively offset.
Quality and Timeliness
One of the primary reasons why a business may want to outsource a task is when it requires skilled expertise. To allow you to focus on your core mission in providing a high-quality product and service to your customer offshoring the task to people who can perform it better makes sense.
Get access to skilled expertise
Workload increases with additional non-core functions and the quality of your core activities suffers as your business grows. Outsourcing in such scenario to a third party plays an important role by allowing your key resources to focus on primary business tasks.
Focus on core activities
Outsourcing certain independent tasks, allows your business to maintain a financial flexibility when there is an uncertainty in demand.
Staffing flexibility
After you allocate to your outsourcing partner, they share the workload of your employees. This allows you to develop your internal task force and use them more efficiency.
Increasing in-house efficiency
Outsourcing will allow you to share any associated risks with your outsourcing partners there by reducing partner your burden. For example – by outsourcing a competent outsourcing partner you reduce the risk involved in having the same task done in-house by staff that may not be as competent in that field.
Better risk management
Is a method of subcontracting various business-related operations to third- party vendors
Business process outsource (BPO)
Refers to practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving customer service relationships and assisting in customer retention and driving sales growth.
Refers to the principles, practices and guidelines that an organization follows when interacting with its customers.
Customer relationship management (CRM)
Defined as a subdiscipline of business process outsourcing (BPO) wherein back office tasks or essential non-client facing support positions are outsourced to onshore or offshore outsourcing companies.
Back office outsourcing
Business consultants provide management consulting to help organizations improve performance and efficiency. These professionals analyze business and create solution while also helping companies meet their goals.
Working and based on the specific field of expertise.
Business and Professionals Consultancy Service
It is a company which deliver messages packages and mail and also known for their speed security tracking services and specialization.
Delivers messages, packages and mail.
Developed to offer a faster and more secure alternative to the usual mail service that had been the only delivery service.
Courier and Mail Services
Describes the cash rewards paid to employees in exchange for the services they provide. It may include base salary, wages, incentives, and / or commission.
Compensation
