Running head: Change Management
CHANGE MANAGEMENT: OUTSOURCING
Definition of outsourcing
Reasons to Outsource: Its Advantages and Disadvantages
Disadvantages of Outsourcing
Crisis due to outsourcing
Case study: Wal-Mart and Foreign Sourcing (Off Shoring) Pressure
New field of outsourcing: Learning Function Outsourcing
China and India
What happens to corporate culture?
In the context of globalization and global economy, change management becomes evident when we find that companies are overlooking the global parameters of a business where change is constant. In the context of this change, outsourcing is global strategic alliance that fosters a winning international strategy. For lower prices combined with quality will generally increase the company’s clients. To achieve lower selling prices, one marketing strategy is to produce these goods or buy imported materials from an outsourcing company in India, China, Taiwan and other countries. This is called value retailing.
Outsourcing literally gives a big edge against competitors in the current tough and aggressive business world. Phenomenally, outsourcing of raw materials to third world countries has increased because the labor cost in these Asian countries are cheaper than local workers in the United States. Definitely, cost structures, internal processes, and ways of working between the outsourced supplier of goods and services, and the American purchasers of goods and services are very crucial factors that will make company profits skyrocket way above the competitors. Examples of outsourcing are call-center jobs, accounting jobs etc. Also, some companies buy the raw materials needed to make a new product from third world countries in order to reduce manufacturing...