Outsourcing

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Section 3: Market Failures and Externalities

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Gucci

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AMIRA AND HALIDAH (INPUT)

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Outsourcing

Disadvantages

Human recources

Distance

Poor Performance

Dependency and Loss of Control

Information Leaks

Recruitment Problems

Contract confusion

lengthy bid process

Control

Company security

Outsourced services

Loyalty

Quality

Loss

Moral In A Workforce

Regular Monitoring

Confidentiality

Competitive knowledge

Strategic alignment

Advantages

Focus

Marketing

Sales

Core competencies

Increased flexibility

Improved cash flow

New technologies and innovations

Better react on changes

Cost control

Cost savings

Taxes

Operation costs

Recruitment costs

Staff

reduced workload

minimized fluctuations

Headcount reductions

What is it

Types

Manufacturer outsourcing

Lower overhead costs

Lower labour costs

Reshoring

Nearshoring

Offshore outsourcing

Multisourcing

Client Model

Prime Contractor Model

Project outsourcing

Business process outsourcing

customer-related services

Human resources

Accounting

Finance

IT outsourcing

Network maintenance

Application software

Computer programming

Web development

IT management