Outsourcing

Outsourcing Nowadays, many organisation are outsourcing their non- core activities to an external agents. Distribution is one of these activities as distribution consider as a non-core activity for many firms. Although, there are many advantage for outsourcing, there are also risks and disadvantage in this process. In this essay I would explain the term outsourcing and explain why organisations are preferring to outsource some of its functions in today’s environment. Also, in this essay it has been tried to analysis the advantage and disadvantage of the outsourcing process and its risks towards the organisation. The word outsourcing could be described as the contractual relationship with a specialised outside service provider for work traditionally done in-house. Outsourcing could also be defined as the use of external agents to perform one or more organisational activities. In the last decade or so there has been a trend, particular among large scale companies, to hand over the whole or part of the distribution function to the external agents. One should emphasis that outsourcing is an issue that is not specific to distribution. Many other organisational functions, such as information system, building maintenance, etc…, have been outsource for many years in organisations. There are different reasons outsourcing, service, distribution, function, relationship, organisation, organisations, companies, company, outsource, should, reduce, need, firm, core, staff, management, activities, process, performance, needs, functions, exel, ericsson, control, supplier, one, ms, logistic, focus, contract, another, work, therefore, supply, specialist