Study Guide No. 7

Question 1

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.

Answer 1

Outsourcing

Question 2

Rather than employing a fulltime staff, outsourcing provides flexible workforce who can work when needed and also decrease labor cost.

Answer 2

Labor cost

Question 2

Allows business to cut down in other expenses.

Answer 2

Infrastructure and Material Costs

Question 3

Entrusting non-central company function to experts elsewhere.

Answer 3

Efficiency

Question 4

Allows all the attention and resources on more essential parts of the business.

Answer 4

Core business Function

Question 5

Talks about on how we produce products.

Answer 5

Customer Satisfaction

Question 6

Outsourcing partners may absorb any of the risk associated with departments.

Answer 6

Risk Management and Continuity

Question 7

For international sales and marketing.

Answer 7

Globalization

Question 8

Let you have short term and flexible contracts.

Answer 8

Flexibility

Question 9

It give companies access to new resources and frees up resources that would otherwise be devoted to those backend function.

Answer 9

Resources

Question 10

It allows business to focus its attention and energy on more central aspects of work.

Answer 10

Innovation

Question 11

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.

Answer 11

Cost-effective

Question 12

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.

Answer 12

Quality and Timeliness

Question 13

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.

Answer 13

Get access to skilled expertise

Question 14

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.

Answer 14

Focus on core activities

Question 15

Outsourcing certain independent tasks, allows your business to maintain a financial flexibility when there is an uncertainty in demand.

Answer 15

Staffing flexibility

Question 16

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.

Answer 16

Increasing in-house efficiency

Question 17

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.

Answer 17

Better risk management

Question 18

Is a method of subcontracting various business-related operations to third- party vendors

Answer 18

Business process outsource (BPO)

Question 19

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.

Answer 19

Customer relationship management (CRM)

Question 20

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.

Answer 20

Back office outsourcing

Question 21

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.

Answer 21

Business and Professionals Consultancy Service

Question 22

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.

Answer 22

Courier and Mail Services

Question 23

Describes the cash rewards paid to employees in exchange for the services they provide. It may include base salary, wages, incentives, and / or commission.

Answer 23

Compensation

Question 24

Providers full complement of accounting professional allowing them to offer a small team of accountants t a lower cost of hiring.

Answer 24

Salary and Compensation Services (Banks, etc.) -

Question 25

The industry of business process outsourcing is rooted on the principle of helping business overcome their company’s weaknesses.
You save time for yourself, your team, and your company; you save money; your company will grow.

Answer 25

Property Equipment Outsourcing

Question 26

Is the practice of hiring resources from outside of an organization to handle certain information technology functions.

Answer 26

IT systems outsourcing

Question 27

Types of IT Outsourcing

Answer 27

1. Moving business or service overseas
2. Nearshoring
3. Homeshoring / Onshoring

Question 28

Typically to take advantage of lower cost and more favourable economic climate.

Answer 28

Moving business or service overseas

Question 29

Transferring business or services to another country close by, often time sharing a border with your own country.

Answer 29

Nearshoring

Question 30

Allowing employees to work from home rather than an office factory or related physical workplace.

Answer 30

Homeshoring / Onshoring

Question 31

Is when businesses hire companies to manage personnel functions. That includes administration of health benefits plans, retirement plans, and workers’ compensation insurance. It also includes hiring, training, and legal expertise.

Answer 31

Human Resources Services Outsourcing