Essay - Outsourcing the Information Highway Has Altered the Way Businesses Function...

Outsourcing

***** information highway has altered the way businesses function and today organizations are competing at a global level. We are witnessing the rapid growth of what are known as 'virtual organizations' where partnering and outsourcing are the trend. Outsourcing is a tool for comp*****nies to optimize *****ir per*****mance and maximize their profitability by allotting nonspecific functions or non-core are***** of ***** business to respective domain experts. Thus ***** provides organizations the opportunity to concentrate on their core *****as or the areas of expertise ***** helps them streamline their operati*****s. ***** is not a *****t*****lly new concept as companies have all along been outsourcing their training operations, clerical w*****ks, shipping and forwarding operations, etc. However the surge in *****formation technology h***** bought a paradigm shift in the way organizations operate and outsourcing has emerged as a ***** business model. [Fred Luthans]

Today, ***** is considered a str*****tegic measure and most organizations outsource their IT enabled services and BPO operations to reduce their cost and increase the efficiency of ***** business operations. Many organizations outsource their back office ***** not only with an economic viewpoint but also to enable them to focus better on the key ***** of ********** business. Outsourcing any area of their operation ***** a partner who has the domain expertise helps organizations have better leverage over ***** business functions resulting in better business outcomes. From the consumer perspective also outsourcing is a welcome trend as it ***** them economical services. Outsourcing not only gives organizations the flexibility in their ***** planning but also by harnessing the power of cooperation outsourcing gives them a strategic advantage in deriving maximum benefits from the ex*****ting market opportunities. Decreasing costs, improving throughput, strategic flexibility ***** overall optimization of core organizational ***** are some of the reasons why organizations ***** part of *****ir business functions. [Federal Reserve Bank of Dallas]

1) Fred Luthans, "Organizational Behavior," McGraw-Hill International Edition, 8th

*****, pg 541

2) Federal Reserve ***** of Dallas, "Beyond the Border: Do What You Do Best,

Outsource the Rest?" Accessed on Oct 28th 2004,