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Outsourcing Plan W/ References

Outsourcing Plan

Outsourcing has become the norm in today's business world. Many might argue that outsourcing is not done just because of financial savings and gains, if managed correctly the company can cut labor costs and increased profits. This paper will discuss an offshore outsourcing plan for Riordan Manufacturing that will decrease cost and increase productivity.
Riordan has decided to use a new strategy for the company that is offshore outsourcing. This is a strategic decision to spur innovation, develop new products, and explore new markets. The rationale for choosing this direction is that outsourcing from the literature review has been determined to decrease cost, increase productivity, and produces a higher quality of work. The functions that Riordan has decided to outsource are: customer service call / service centers; database management; application programming; data entry; and sales. Riordan chose to outsource the functions to China. The location was chosen due to the company already has a presence in this market. Legal, communication, role expectation, time zones, and job knowledge can be barriers when establishing a presence in a foreign market. These barriers have already been addressed when Riordan initially entered the market. "China's growing influence on standards could define global competition in technology, media, and telecommunications sector for years to come (Deloitte, 2004). An outsourcing plan pertaining to these specific functions is established for the company. The success of the project will be measured by the achievement of outcomes as defined in the performance measures selected.
As globalization of the information technology (IT) industry continues a natural evolution has been for companies to perform business in an overseas market (Anonyms, 2003). Many industries are participating in the offshore outsourcing explosion. Examples of the industries that have been affected include and are not limited to...