Description: General purpose of outsourcing is to increase efficiency, reduce costs & to acquire innovative capabilities quickly-by buying the capabilities instead of developing them.  Outsourcing can be a source of strategic advantage.  It can be a disadvantage if cost begins to spiral upward.

Source: Sourcingmag.com

Link: http://www.sourcingmag.com/content/what_is_bpo.asp

Discussion Questions:

1. Describe what is meant by the “lean & mean way of doing business & staying competitive.”  Give examples.
2. Globally integrated production:

a. Outsourcing offshore

b. Outsourcing onshore

c. Foreign based companies do the work

d. None of the above

3. Common trend in IT:

a. Outsource core competencies

b. Delivery of IT services that limit amount of responsibility & risk businesses must shoulder in acquiring & maintaining technology that enables core business functions.

c. Outsource non-core functions 

d. All of the above

4. Trend is away from:

a. Customer service

b. Large numbers of IT staff who support internally developed applications

c. Complex systems

d. All of the above