Which Is The Best Example Of Outsourcing?
by Mashum Mollah Business 19 October 2021
Q1. Which Is The Best Example Of Outsourcing?
The right answer to the question is “A US shoe company opens a factory in China and hires Chinese workers to make shoes.”
Which Is The Best Example Of Outsourcing? To answer this question, we have to mention one bitter truth…. The term “Outsourcing” itself has a negative tone. However, it is nothing new; over several years, global outsourcing services have been on-trend and many companies consider moving production to Mexico or similar countries with lower expenses to be an increasingly attractive option.
But when you think about which is the best example of Outsourcing, I know several ideas accumulate in your brain. But why is the correct option “a US shoe company opens a factory in China and hires Chinese workers to make shoes” and not anything else? Read till the end to get your answer.
What Is “Global Outsourcing Services?”
In order to know which is the best example of outsourcing, don’t you think a global outsourcing definition is needed? Well, precisely outsourcing is “a business strategy where an organization recruits third parties for assigning specific work responsibilities.” For instance, you might be looking for find a personal assistant online to aid the smooth running of your business, or you might be looking to oursource data entry tasks to a third party.
The practice of outsourcing went on hype in the 1980s after beginning in the 1970s. Most of multinational companies around the world are surviving on Global outsourcing services and are performing pretty well. That is why it is a little tricky to tell which is the best example of outsourcing specifically.
But worry not, as we have already given the answer, we will be explaining the rationale behind it.
Which Is The Best Example Of Outsourcing – Details Explanation Of the Answer
Which is the best example of Outsourcing? A US shoe company opens a factory in China and hires Chinese workers to make shoes.
When does global outsourcing service happen? When a company opens its unit in overseas destinations and hires offshore employees. So a company of US origin that opens a factory in China and hires Chinese workers is the best example of outsourcing.
The hired workers must have to be both Chinese citizens and Chinese residents for tax purposes.
The next question is, “ why would the US shoe company do that? The two main aims of outsourcing are cutting labor costs and optimizing the overall business performance. Recruiting onshore employees, especially in a country like the U.S.A, would incur much higher costs. Hence, global outsourcing services is the only option.
So the query “Which is the best example of Outsourcing?” is well justified.
What Are The Benefits Of Global Outsourcing Services?
Whether you are looking for a finance professional, a project manager, a healthcare virtual assistant, or any other sort of professional. Global outsourcing services could be the ideal solution.
Global Outsourcing services have tons of benefits. Let’s check them out without staying limited to which is the best example of outsourcing.
- Global Outsourcing Solutions reduce costs
- With outsourcing, you can easily leverage business outlook
- Make the best use of core internal resources for critical activities
- Can run the business 24*7
- Increase in profits
Are There Any Negative Sides In Global Outsourcing Services?
Which is the best example of outsourcing? – even the best example also undergoes certain negative experiences. While it brings a plethora of prospects to the companies, the global outsourcing services also cause enough pain. Following are the disadvantages of outsourcing services:
- Causes high competition in the domestic market
- Employee turnover increases, and employee loyalty decreases
- Unemployment rises in own country
Is Remote Staffing Different From Global Outsourcing Services?
There is a significant difference between remote staffing and outsourcing. While outsourcing means hiring overseas employees for offshore business units, remote staffing is working from remote places. However, remote outsourcing means hiring offshore employees who would work from remote locations for a company.
Top Global Outsourcing Companies In The World
Which is the best example of outsourcing in the world? Frankly speaking, a majority of the employment industry in the world is running based on global outsourcing solutions. Sometimes it creates competitive complications in the International market.
Some of the best outsourcing companies in the world are as follows:
1. Wipro
Involved in Artificial Intelligence, digital marketing, customer service management, cloud & infrastructure.
2. IBM
Engaged In Talent Acquisition, Staff Augmentation, Financial And Consulting Services, Financial Planning and Analysis.
3. Accenture
Outsourcing services are HR services, healthcare utilization management, support, and procurement operations.
4. Infosys
Outsource customer care, recruitment, supplier relationship management, and payroll outsourcing.
5. Alibaba
Alibaba. China’s eBay outsources mainly the website development and designing works.
6. Nike
Mainly Nike’s product manufacturing and designing are being outsourced.
Frequently Asked Questions (FAQ)
Q1. Which Is The Best Example Of Outsourcing Quizlet?
The best example of outsourcing is when a US shoe company opens a factory in China and hires Chinese workers to make shoes.
Q2. What Is The Top Reason For Global Outsourcing Of IT Services?
The top reason for global outsourcing of IT services is Flexibility. More outsourcing of IT services means flexible use of resources and increasing business productivity.
Q3. Is The Global Outsourcing Market Growing?
Indeed, the global outsourcing market is expanding at a faster rate. By 2025, it is expected to touch USD 397.6 billion. With the development of cloud services, IT sourcing is becoming more widespread.
Q4. After Outsourcing To Global Suppliers, __________ Is Not Simple.
The correct answer to this question is Back-shoring. Because, after the outsourcing is done, implementation of back shoring is challenging.
Q5. Is The Global Outsourcing Definition Applicable To Shoe Brand Puma?
The German multinational shoe specialist company Puma outsources most of its manufacturing. Appeximayly 90% of its production occurs in the Far Eastern countries. But according to the annual reports and sustainability reports of PUMA, this production outsourcing is fatal to the environment. It affects the value chain of Puma heavily.
The Final View
Outsourcing is something that is inevitable with globalization. Hiring domestic employees makes multinational companies incur huge amounts of cost. This is where the logic of Outsourcing lies. As a result, the answer to which is the best example of outsourcing in the US shoe company opening a factory in China and hiring Chinese workers.
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