Nothing Important Essay

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MOT 5333 Technical Drivers of Globalization Essay 1 Outsourcing as a Globalization Factor Supervisor: Larry L. Ball, PhD Author: Huseyin Tunctepe 07.18.2013 1 Outsourcing as a Globalization Factor Introduction What is Outsourcing Outsourcing can be defined as out-contracting of an internal business process to a third-party organization. Sometimes known also as facilities management, outsourcing is a strategy by which an organization contracts out major functions to specialized and cost-efficient service providers. Companies have always hired contractors for particular types of work and have formed long-term relationships with firms whose capabilities complement or supplement their own. However, the difference between simply supplementing resources by subcontracting and actual outsourcing, is that the transfer of staff from a host company to a specialist, usually smaller, company with the required core competencies. The process began during the 1970s an 1980s as the companies which were competing globally started focusing on their core business and outsource the functions that they had no competency. As an example, publishers have often purchased services such as composition and printing. The use of external suppliers for these essential but supporting services were the main cause in the evolution of outsourcing. In the 1990s, as organizations began to focus more on cost-saving measures, functions in the areas of accounting, human resources, data processing, internal mail distribution, security were obtained from external organizations. Since the1980s outsourcing is popular practice in companies globalization strategies and has since then been growing in various forms. With the passage of time, this process began to increase rapidly in all major economies of the world. The rapid increase in outsourcing process was further catalyzed with the process of

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