Although outsourcing in North America now represents 40 percent of all global outsourcing, this is down markedly from more than 60 percent in 1997, and will continue to drop as European and Asian companies
outsource more aggressively.
The customer service area, which is responsible for a variety of duties, is more difficult to
outsource than other servicing functions.
Simply stated, if the
outsource provider achieves the desired outcomes (results), it receives a bonus.
Lastly, while considering where to
outsource, one must consider the geopolitical stability of the environment.
This is why many companies have come to
outsource some or all aspects of small dollar receivables: they are costly to handle for the return they provide, and because collection staffs are stretched thin, small dollar receivables are often not handled efficiently.
"Dubai
Outsource City is home to around 140 companies operating in the sector that serve the UAE and the wider region.
The data indicates that, not surprisingly, outsourcing organizations spend slightly more on warehousing than organizations that do not
outsource. Outsourcing, however, is no guarantee of superior performance in other aspects of warehousing and distribution.
Similarly, the results of studies of Iran researchers group in 2003, conducted to investigate the overall conditions of outsourcing services in the universities of medical sciences, indicated the managers' high propensity to
outsource support and logistic services because of their relative simplicity and the large number of contractors for providing these services.1 A study in Texas found that the nutrition services had been outsourced to the private sector more than other services.
Outsourcing of bioassay testing, not unexpectedly, tops the list with 4 in 10 respondents indicating they will
outsource at "significantly higher levels" over the next 24 months.
Once top management have decided what functions to
outsource they typically delegate the commitment to their middle management to manage and administer the outsourcing activities since they believe that their employees have the capability and functional knowledge in making it a success.
And you never get it back." Even when the intent is not to
outsource innovation itself, American companies are discovering that outsourcing the work means outsourcing the learning.
He argues that the viable option to improve the transportation performance of a company is to
outsource it to a service provider who is specialist in that specific field.