OUTSOURCI NG INSOURCIN G OR
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OUTSOURCING
INSOURCINGO
R
HELLO!!!! Today i will introduce to models of business that I feel interesting, the basic information about them will be revealed in this special match Let’s check it ...
VSINSOURCING
OUTSOURCING
BUT WHAT ARE SPECIAL THINGS ABOUT THESE MODELS???
AND WHICH ONE
IS BETTER ? ?
IN ORDER FIND THE WINNER WE SHOULD WATCH AND ANLYZE 3 ROUNDS:
COST
MANAGEMENT
PRIVACY
And evaluate pros and cons too
“The transferring to external resources services previously provided internally. (1)”
“An allocation or relocating of resources internally within the same organization.”
BASIC DEFINITION
OUTSOURCING
(1) Outsourcing and insourcing in an international context (2015)
“The transferring to external resources services previously provided internally.”
“An allocation or relocating of resources internally within the same organization. (2)”
OUTSOURCING
INSOURCING
BASIC DEFINITION
(2) Outsourcing Training and Education. American Society for Training and Development (1999)
THE BATTLE BEGIN!!!
Okay, it’s enough, let start this
match plzzzz
ROUND 1Cost
Outsourcing
A B
Outsourcing company has external works
ROUND 1Cost
Insourcing
A
A’
Their works are internal
ROUND 2MANAGEMENT
A B
Outsourcing
Third party C can join and provide human resource for A by using B’s employees and pay for them
B’s employees are not belonged to A
ROUND 2MANAGEMENT
Insourcing
A A’
A’ is one part of A, so they are the same
ROUND 3Privacy
Outsourcing
Parts of your work happens outside
Risk of privacy is high
Insourcing
Your works happen inside the company
Risk of privacy is low
PROS AND CONS
OUTSOURCING
Pros
Reduce costs of activities
Greater disifiaction in activities
Faster decision making
Smaller oder backlog
PROS AND CONS
OUTSOURCING INSOURCING
Pros
Reduce costs of activities
Greater disifiaction in activities
Faster decision making
Smaller oder backlog
Good control of production activities
Strong connection in labour workforce
Can keep business secrets
Independent from other firms
PROS AND CONSCons
OUTSOURCINGLoss of control on activity
Employee resentment/bad morale
Security reduction lead to inefficient products
PROS AND CONSCons
OUTSOURCINGLoss of control on activity
Employee resentment/bad morale
Security reduction lead to inefficient products
INSOURCINGIncrease labor cost
Increase cost of capital or initial money
Management problem (especially with big firms)
What do we do now???
How can this information help young entrepreneurs find the right way???
That’s why I have some things behind for you …
So many information and definition, what it this for???
RECOMMEND FOR START UP
A good team Grow independently Good finacingTough
INSOURCING is your choice
RECOMMEND FOR START UP
A good team Grow independently Good finacingTough
INSOURCING is your choice
Lack of finance Bad employeesLack of experienceNew + Weak
OUTSOURCING is your choice
In present you can combine two these models and make your company survive and successful.It depends largely on your team and leader’s decision.
Have fun and follow your dream!!
Schniederjans, M. J., Schniederjans, A. M., & Schniederjans, D. G. (2015).Outsourcing and insourcing in an international context. Routledge.
Reponen, T. (1993, December). Outsourcing or insourcing?. In ICIS (pp. 103-115).
Derose, G. J. (1999). Outsourcing Training and Education. American Society for Training and Development.
REFERENCES
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