All entries for Tuesday 24 April 2012

April 24, 2012

Evaluation on outsource

Outsource is not a simple task for evaluating before practicing. In my previous thought, the companies always outsource the exhausting tasks to others, so they might have more resource to create the competence in the future. After this seminar, some change happened in my mind. Basically, cost issue is put the high priority in business running. Thus, the managers will save some money on manufacture which is the major part in outsource. However, some burden might be added through some other manners, like tariff, tax, or logistic expense. Also, some regulation in specified regions should be noticed as well. It is hard to image the companies will assign the core competence to others. Therefore, clear target should be clarified in advance. The managers should always have clear idea which part should be reserved. At the end of this discussion, I realize each component in business operating is closely linked together, so business owners should have as much realization as possible before making any decision which might bring potential risk to the business.


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