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Posted: Mon 19:43, 14 Oct 2013 Post subject: abercrombie Effects Of Outsourcing On An Organisat |
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The above findings were carried out to determine the effects of outsourcing on an organization. It was noted that outsourcing could pose both benefits as well as challenges in the organizations which contract out some services. It was also clear that organizations needed to employ various strategies to ensure that outsourcing worked to their advantage. The findings were discussed according to the research questions as follows: All the organizations under study agreed to have contracted out some of the non-core activities to outside suppliers. This implied that outsourcing must have been bringing in some benefits to the organizations. The outsourced [url=http://www.mxitcms.com/abercrombie/]abercrombie[/url] services [url=http://www.mnfruit.com/doudounemoncler.php]moncler[/url] included staff transport, cleaning [url=http://www.mnfruit.com/airjordan.php]jordan pas cher[/url] services, mailing services, canteen services, security services, computer services, clearing and forwarding services, brand promotions, among others. These services were non- core to the surveyed organizations considering that they dealt with manufacturing.
A hundred percent of the respondents agreed that outsourcing services led to improved services and products, 83.33 percent agreed that it led to more management time. Access to expertise and avoidance of creating departments for non-core activities were also agreed on. These reasons showed that organizations did really benefit from outsourcing fairly well. From the respondents' rating of the benefits, focus on core activities took the lead. This was therefore the main reason why most of the organizations outsourced non-core activities. Improved quality of products also seemed to be a core reason why organizations would contract out some of their activities. The other named benefits were fairly agreed on to have been achieved in [url=http://www.rtnagel.com/airjordan.php]jordan pas cher[/url] the organizations. These benefits tended to tally with the literature extracted from the various authors (Luke, Rogers, Ogachi, Mokaya, Kirui and CRIC). All the researchers above agreed that outsourcing was a way to reduce costs, focus on core activities and improve services. The only difference was that all the above researchers focused on different industries.
The challenges of outsourcing should not however be ignored, from the findings, it was noted that some of the companies who contracted out some of their non-core activities also faced various challenges. Though only a few of the respondents (eight) agreed to have faced challenges with outsourcing, this could not be taken for granted. If left to thrive, such [url=http://www.jeremyparendt.com/Hollister-b5.php]hollister[/url] challenges could cause damage to the organizations. The occurrence of conflicts between the outsourced firms and the outsourcing firms was noted but this was not found to be very intense. Most of the organizations that agreed to have faced these conflicts believed that they only occurred in relatively few occasions. Most agreed that such conflicts were of a moderate level (50 percent of the respondents) From the findings, control problems were the most acknowledged challenge by the organizations. Fear of vendor failure was the second most acknowledged [url=http://www.jeremyparendt.com/jimmy-choo.php]jimmy choo chaussures[/url] challenge that organizations face while loss of innovation was the third most faced challenge. Respondents also felt that loss of internal coherence was a challenge though this was agreed on slightly. Employees' fear [url=http://www.jeremyparendt.com/jimmy-choo.php]jimmy choo paris[/url] of job loss was the least acknowledged challenge faced by outsourcing firms.
From the cited literature, the challenges acknowledged by the sampled organizations were the same as those faced by companies outside Kenya with some exceptions. Unlike the firms outside Kenya, the sampled companies did not think they had conflicting objectives with their outsourced suppliers nor did they view employee's fear of job loss as a big challenge. The sampled companies agreed to the use of the various outsourcing strategies. As per the data findings, getting quality assurance from vendors was the highly used strategy by the organizations in ensuring successful outsourcing. Seventy five percent of the sampled companies used this strategy. Cost-benefit analysis [url=http://www.jordanpascherofficiele.com]air jordan pas cher[/url] strategy, having a vendor-selecting criterion and identifying the need to outsource were also other strategies used in the organizations. The organizations also seemed to have some vendor recruitment strategies. Most of them chose their suppliers through synchronized operations system with permanent suppliers. Other strategies were not very oftenly used. [url=http://www.gotprintsigns.com/abercrombiepascher/]abercrombie pas cher[/url] The use of a single strategy in an outsourcing firm is not adequate. This is because better firms arise which provide [url=http://www.jeremyparendt.com/Barbour-Paris.php]barbour france paris[/url] better services and if a company relies on permanent supplier for its services, it may end up missing out on innovative suppliers. Also, there is a risk of huge losses if a permanent supplier fails to deliver as expected if a company relies heavily on a single supplier for outsourced [url=http://www.rtnagel.com/airjordan.php]nike air jordan pas cher[/url] services. For an outsourcing decision to be effective, an organization must employ various strategies, and not just one. This seemed to be the case in the sampled firms, since each of them used one or two strategies in their outsourcing function.
Outsourcing is a strategy that has been practiced by many big companies in the world. The benefits of outsourcing have been discussed above together with the challenges and strategies of effective outsourcing, the objectives that the research sought to find out. For this strategy to work for the better of the companies who adopt it, the companies must compare the benefits with the costs of outsourcing so as to ensure viability of the strategy. It is also vital for the organizations to adopt different strategies that ensure the success of the services outsourced. The use of a single strategy will not fully ensure a company's success, there should be a plan that combines the various strategies in order to ensure that companies benefit rather than lose from outsourcing.
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