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Outsourcing is usually the term used when a company takes a part of its business and gives that part to another company. In recent times, the terms has been most commonly used for technology related initiatives such as handing over the IT help-desk to a third-party. But it can also refer to non-technical services such as handing over the telephone-based customer service department.

Disadvantages and Advantages

disadvantages

• Protection of proprietary product technology
• Elimination of direct communication
• High dependancy on the partner
• Informations are more vulnerable

• Strategic flexibility:
• Maintain flexible
• Lower Costs:
• Avoid bureaucratic inefficiency
• Offsets:
• Acquire customers

Stefanie Hörig & Pia Kramer

Outsourcing

Definition

Advantages

Thank you for your attention

Disadvantages

Sources

• Hill, C. W. L., „International Business: Competing on the Global Marketplace“, 2009, McGraw-Hill, chapter 16
• http://www.lifung.com/eng/network/map.php
• http://blogs.apics.org/ypst/wp-content/uploads/2009/10/104664-Boeing_787_DreamLiner.gif
• Marshall, L., PM4Web, 1 August 2008, retrieved from http://3.bp.blogspot.com/_TUs17IBrSL4/SK0mnokFmUI/AAAAAAAAAE4/Dl7xg4q8QoM/s400/outsourcing_cartoon_blank_and_white.png
• Steinberger, P., Süddeutsche Zeitung, “Die Anderen”, Saturday/Sunday, 16/17 April 2011, No. 89