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outsourcing is a successful in increasing product quality and/or substantially lowering firm and computer cost.and why?

2007-02-07 19:05:41 · 4 answers · asked by bhebz 1 in Business & Finance Other - Business & Finance

4 answers

In outscoring your are not only breaking the monopoly of any particular vender but at the same time ur creating some more new vender and getting some new input and creating competition in the same field and as a matter of fact the cost os coming down .
By assessing the relative risks of making or buying, product/companies can leverage their skills and resources for increased profitability
For eg . Nike, Inc. is the largest supplier of athletic shoes in the world. Yet it outsources 100 percent of Its shoe production and manufactures only key technical components of its Nike Air system. Athletic footwear is technology- and fashion-intensive, requiring high flexibility at both the production and marketing levels. Nike creates maximum value by concentrating on preproductlon (research and development) and post-production activities (marketing, distribution, and sales), linked together by perhaps the best marketing information system in the industry.

2007-02-07 19:24:34 · answer #1 · answered by Amit G 3 · 0 3

I think the costs are reduced because many countries allow companies to pollute with impunity. Also there may be no need for health benefits, no liability insurance or Workmen's Comp. These countries do not pave all their roads or provide electricity to all their people and the primary and secondary education may be poor or not available to everyone. These advantages are reflected in the tax rate.

I did not know about "outsourcing is a successful in increasing product quality...."

2007-02-07 19:14:29 · answer #2 · answered by Ron H 6 · 3 0

Outsourcing lowers quality and transfers U.S.'s wealth into foreign banks.

It is proven that outsourcing is bankrupting America. Because of outsourcing our national debt is growing. Fact.

2007-02-07 19:07:55 · answer #3 · answered by a bush family member 7 · 3 0

Outsourcing is a dirty word... I've lost 2 IT jobs because of it. Now the third one is looking like it will be heading the same way.... right to India.

2007-02-07 19:08:39 · answer #4 · answered by bakfanlin 6 · 2 0

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