Making the Case for Global Outsourcing

Making the Case for Global Outsourcing

Alan D. Smith (Robert Morris University, USA) and Sara Joy Krivacek (Robert Morris University, USA)
DOI: 10.4018/978-1-5225-8479-7.ch023


Social media and empowered customers have significantly raised customer expectations of quality. Although there are similarities and differences in the approaches taken by management, they share the common goal of delivering a high-quality product and satisfying their customers. The majority of the case study concentrates on how both companies monitor quality, evaluate performance, train employees, and promote continuous improvement in order to achieve best business practices. The review of the literature on global outsourcing and analysis of the case studies provide evidence that economic development creates both short-term operation advantages through increased levels of efficiency as well as long-term social and cultural changes. Operational and strategic managers can use this information when making decisions on where to locate various aspects of their business. In some cases, it may make sense to outsource a particular task, but in other cases an organization may want to offshore particular tasks in order to keep control of the process.
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To introduce the strategic need for global outsourcing and some of the recent public pushback associated with following such a strategy, a basic review of some of the pertinent literature, especially concentrating on the growth of globalism, future aspects of outsourcing, evolution and risks of offshoring operations and services, supply chain management, and supply chain management concerns of offshoring operations and services, will be examined. This discussion will be followed by a few case studies highlighting some of the issues these companies face in the global economy in terms of outsourcing.

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