Name one function performed internally by an organization that you are involved with that could be more effectively outsourced and support your reasoning. Do you think that outsourcing is a good or bad business practice and why?
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One function that could be outsourced at our organization would be the maintenance function. At the present time, one day maintenance person has the responsibility of cleaning and maintenance of the entire facility. We have tried, albeit unsuccessfully, to fill the position by hiring our own employee. Each time, failure to show up or laying down on the job has resulted in the dismissal of that person. Part of the issue with an in house employee is that of supervision. Typically the people we have hired, no matter how careful we have been, are marginally motivated people who needed a jump start on occasion.
Outsourcing the just the cleaning would provide better quality of work and service while greatly reducing the difficulties we have experienced. On site supervision is provided in addition to more than one person doing the work. Tradtionally the people used by the outsourced contractor are trained for this work. Our situation involves getting someone who would agree to work the overnight and teach them to clean the way we want it done.
This outsourcing, through the most recent cost evaluation, appears to be the most cost effective solution.
Outsourcing can be an effective option for many businesses. When it becomes cheaper to pay for a good or a service than to produce it yourself it makes sense; also the given parameters must meet the demands of the business, i.e., just in time(JIT) inventory for JIT manufacturing. This also assumes perfect information (or close to it) makes outsourcing an efficient piece of the program. One just look at Henry Ford’s first way of producing the automobile. Raw steel in one end - a finished automobile at the other. . .initallly making all of the parts in between. The spread of communication technology and the development of a truly global business climate makes outsourcing practial and viable in many instances.