The Dynamics and Complexity of Outsourcing
Pages : 522-532Download PDF
Outsourcing has become very sophisticated and technology intensive. This is attributed to the demand for enhanced productivity and the maintenance of standards. It cannot be emphasised enough that skilled personnel is a key requirement when conducting outsourcing. This article investigates The Dynamics and Complexity of Outsourcing through the use of secondary method of data collection. The key findings suggest that the increase in outsourcing of core and non-core activities creates business opportunities. The successful management of outsourcing relationships, the adoption of Total Quality Management (TQM) and the skillful compilation of outsourcing contracts are considered to be of paramount importance in attaining successful outsourcing outcomes. Outsourcing creates jobs with minimal remuneration for vendor companies to attain higher profits and job loss of permanent personnel which is a complex issue to address. Union leaders globally have viewed outsourcing as unfavourable for their members. The challenge however lies in identifying suitable formulae to compensate retrenched workers and the compilation of favourable remuneration packages for outsourcing personnel. In conclusion, supply chains open markets globally allowing free trade to take place which consequently results in increased economic growth and development.
Keywords: Outsourcing, Outsourcing Vendors and Client Firms.