SEVICES: GOING GLOBAL? LE THI MY LINH BABAIU10198 TRAN THI THANH THUONG BABAWE10534
Feb 16, 2016
SEVICES: GOING GLOBAL?
LE THI MY LINHBABAIU10198TRAN THI THANH THUONGBABAWE10534
11.3SERVICE OUTSOURCING
BENEFITS AND DRAWBACKS
A •TERMINOLOGY
B •BENEFITS
C •DRAWBACKS
D •EXAMPLE OUTLINE
A. TERMINOLOGY
SERVICE Huge room for growth The rate of increase Outsourcing service function in all
companies Higher skill level More mobile
SERVICE VS MANUFACTURING ACTIVITIES
B. BENEFITS
DCs LDCs
1.Boost productivity- Reducing expenditures- Increasing quality of the service and
delivery=> Higher profit, more capital
For DCs
2. Allow to restructure- Focusing on core activities- Reducing work loadÞ Increasing productivity and value of the
production
For DCs
3. Increasing the competitiveness- more chances to enter the market
=> creating a new international division of labour in service production => increasing competitiveness => improving quality of labor & products
For DCs
1.Jobs opportunity- Cheap labor cost in LDCs - More countries enter the market Þ More jobs created
For LDCs
2. Higher skilled jobs : based on the characteristics of outsourcing
3. Infrastructure investment : DCs invest in LDCs
4. Cost saving : economy to scale
For LDCs
Some pictures about outsourcing
For DCs For LDCs
C. DRAWBACKS
1. Job loss- Sharing overall labors- Abroad outsourcing
=> Need to have some policies
For DCs
2. Loss of managerial control- Turning control among companies
3. Hidden costs- Additional charge not included in the contract
4. Threat to security and confidentiality
5. Quality problems -The outsourcing company will be motivated by profit
For DCs
1. Relocation of outsourced service activities - Always moving to more competitive LDCs
2. Negative impacts on culture and tradition
For LDCs
Outsourcing takes many forms In Vietnam :
- Famous for software outsourcing destination- Rank 20th in “excellent outsourcing
destinations”- provides a great pool of skilled software
developers => meet the demand
D. APPLICATION
expends the outsourcing service in software, designing websites…. :
- Outsourcing at your company - Offshore project - Dedicated offshore software development
center
Hoangnguyen informatic
Application development Applications integration Desktop management
The service at Hoangnguyen :
Main areas ( strength ) : informative technology in : Financial and accouting Trade Government’s activities Health service And other kinds of management Partners : Van Hien University Nha Trang informative technology center Solution limited company ….
BENEFITS DRAWBACKS boost productivity Job lossfocus on core activities Loss of Managerial Controlnew international division of labour
Hidden Costs
Threat to Security and Confidentiality
Quality Problems
SUMMARY
DCs
BENEFITS DRAWBACKS Job opportunity Relocation of outsourced
service activitiesCreation of higher skill jobs involving better pay and, training and transferable skills
Negative impacts on culture and tradition
Infrastructure investment
Cost saving
LDCs
http://tqasolution.com/dich-vu/out-sourcing.html
http://www.businessweek.com/magazine/content/06_05/b3969401.htm
http://www.outsourcing.org/ http://www.computerworld.com/s/topic/72/O
utsourcing
REFERENCES
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