Success in customer service is something that can transform the profitability of a given company. Firms that want to succeed must support and train their employees in order to offer exemplary services to the targeted customers (Levine 3). Unfortunately, the customer service arena has been ignored or given minimum attention in the recent past. This essay gives a detailed description of outsourcing and its applications. In order to succeed in this field, companies must take the issue of customer service seriously.
Definition of Outsourcing
The term “outsourcing” refers to the process through which a company collaborates with another firm or individual to have a given work completed (Merino 9). More often than not, various non-core functions of a company are outsourced. A good example of outsourcing is when “a company contracts call center support to another firm or company” (Levine 6). Sometimes the process of outsourcing may entail the transfer of workers or resources from a given firm to another. This practice is usually undertaken in order to maximize production, deliver exemplary customer services, and reduce business costs. The major types or applications of outsourcing are described below.
Offshoring
Brown et al. define offshoring as “the transfer of a business function or department from one nation to another” (3). Within the past two decades, offshoring has been characterized by the outsourcing of administrative, manufacturing, and technical services. The current wave of globalization continues to support this process. The main objective behind offshoring is ensuring that more companies minimize their production or managerial costs. A good example of offshoring is when a firm decides to have some of its products manufactured in a different country. Companies such as Adidas and Apple have been embracing the power of offshoring.
Home sourcing
This term refers to the transfer of service industry employment from the office setting to home-based workers who have the required resources. The process is usually supported by the use of Internet facilities (Brown et al. 7). Companies can decide to hire independent employees or contractors. The employees are then trained using sustainable methods or processes. A good example is a newspaper company that decides to hire independent freelancers to compose or write various articles.
Homeshoring
The other unique approach to outsourcing is known as homeshoring. This term refers to an outsourcing model whereby “employees are required to perform various tasks from an external office or home” (Levine 8). In order to engage in this process successfully, employers will hire the right individuals and equip them with the best skills and resources. The internet is usually used to manage, assign roles, and empower the workers. For example, many publishing companies can recruit different freelancers and task them remotely using the internet.
Personal Opinion about Outsourcing
This discussion shows clearly that outsourcing is a practice that is attracting the attention of many corporations. The process is embraced by companies that want to minimize specific business costs. Outsourcing makes it easier for companies to acquire raw materials cheaply and deliver quality products to the targeted customers. The process has been observed to maximize efficiency, promote business goals, and minimize business risks (Almalki 361). Unfortunately, the use of outsourcing can pose numerous threats such as loss of jobs in the country. Quality can also be compromised unless adequate measures are put into consideration. That being the case, companies that want to outsource different processes or functions should be aware of the complexities associated with the practice.
Works Cited
Almalki, Jameel. “ICT Offshore Outsourcing: Its Appeals and Impacts.” International Journal of Computer Science Issues, vol. 9, no. 6, 2012, pp. 359-362.
Brown, Clair, et al. “Using a Business Function Framework to Examine Outsourcing and Offshoring by US Organizations.” IRLE Working Paper, vol. 1, no. 1, 2014, pp. 1-12.
Levine, Linda. “Offshoring (or Offshore Outsourcing and Job Loss among U.S. Workers.” Congressional Research Service, vol. 1, no. 1, 2012, pp. 1-9.
Merino, Fernando. “Offshoring, Outsourcing and the Economic Geography of Europe.” Regional Science, vol. 1, no. 1, 2015, pp. 1-18.