Saturday, August 14, 2010

Case 4

1.What is Outsourcing?
= Outsourcing refers to a company that contracts with another company to provide services that might otherwise be performed by in-house employees. Many large companies now outsource jobs such as call center services, e-mail services, and payroll. These jobs are handled by separate companies that specialize in each service, and are often located overseas.

There are many reasons that companies outsource various jobs, but the most prominent advantage seems to be the fact that it often saves money. Many of the companies that provide outsourcing services are able to do the work for considerably less money, as they don't have to provide benefits to their workers and have fewer overhead expenses to worry about.

2.What are the advantages and disadvantages of outsourcing?
= Advantages of Outsourcing The benefits of outsourcing are:Less capital expenditure - For example, by outsourcing information technology requirements, a company does not have to buy expensive hardware and software.
Less management headache - For example, by outsourcing business process such as accounting, a company no longer has to hire and manage accounting personnel.
Focus on core competencies - Outsourcing non-core related processes will allow a business to focus more on it's core competencies and strengths, giving it a competitive advantage.

Disadvantages of Outsourcing

Before deciding on outsourcing your company's business process, keep in mind the disadvantages of outsourcing:

Less managerial control - It may be harder to manage the outsourcing service provider as compared to managing your own employees.

Outsourcing company goes out of business - If your outsourcing service provide goes bankrupt or out of business, your company will have to quickly transition to a new service provider or take the process back in-house.

May be more expensive - Sometimes it is cheaper to keep a process in-house as compared to outsourcing.

Security and confidentiality issues - If your company is outsourcing business processes such as payroll, confidential information such as salary will be known to the outsourcing service provider.

3.what is implication of Outsourcing
= deduction: something that is inferred (deduced or entailed or implied); "his resignation had political implications"
significance: a meaning that is not expressly stated but can be inferred; "the significance of his remark became clear only later"; "the expectation was spread both by word and by implication"
an accusation that brings into intimate and usually incriminating connection
a logical relation between propositions p and q of the form `if p then q'; if p is true then q cannot be false
a relation implicated by virtue of involvement or close connection (especially an incriminating involvement); "he was suspected of implication in several robberies"
wordnetweb.princeton.edu/perl/webwn

Implicature is a technical term in the pragmatics subfield of linguistic coined by Paul Grice. It refers to what is suggested in an utterance, even though not expressed nor strictly implied (that is, entailed) by the utterance. ...
en.wikipedia.org/wiki/Implication_(pragmatics)

In linguistics, entailment is the relationship between two sentences where the truth of one (A) requires the truth of the other (B). This relationship is generalized below.
en.wikipedia.org/wiki/Implication_(logical)

The material conditional, also known as the material implication or truth functional conditional, expresses a property of certain conditionals in logic. In propositional logic, it expresses a binary truth function from truth-values to truth-values. ...
en.wikipedia.org/wiki/Implication_(logic).

= Outsourcing is contracting with another company or person to do a particular function. Almost every organization outsources in some way. Typically, the function being outsourced is considered non-core to the business. An insurance company, for example, might outsource its janitorial and landscaping operations to firms that specialize in those types of work since they are not related to insurance or strategic to the business. The outside firms that are providing the outsourcing services are third-party providers, or as they are more commonly called, service providers.

Although outsourcing has been around as long as work specialization has existed, in recent history, companies began employing the outsourcing model to carry out narrow functions, such as payroll, billing and data entry. Those processes could be done more efficiently, and therefore more cost-effectively, by other companies with specialized tools and facilities and specially trained personnel.

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