Globbbalencounters Essay

3334 Words Apr 25th, 2014 14 Pages

Global outsourcing of information technology is a phenomenal business strategy for most countries all over the world, especially the developed. Companies within these states have limited development areas and resources to erect facilities that will maintain all levels of products and services development within the state, hence the aspect of offshore mergers. Various reasons as (Carmel &Nicholson 2005) identifies are as a result of cost reduction strategies due to easy and cheap transit of information and other related products.

Edgell, Meister and Stamp (2008, p. 174) argue that, rise of outsourcing is based on cost benefits since most business operations operate on cutting cost of production to realize mass turnover.
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The study aims at evaluating the management perspective of GlobShop firm in relation to the success of outsourcing information technology services and product. As portrayed by, (Carmel & Nicholson 2005) corporate strategy to develop their business through outsourcing is geared towards cheap costs and easy transit, in respect to resources, production cost, market expansion, diverse skills in ideas and development of technology. On another perspective this business strategy in the approach of the potential partner impacts greatly on the relationship that is fostered first hand. Other factors are realized once the coast is clear in relations to mutual understanding, hence no hurdles that may foil the venture. Cost reduction is one of the factors that emanate from good relationship, with market advancements, integration of new advancements and skills leading to innovations.

Though all may appear well in the outsourcing venture, unpredictable occurrences may cause disability in the operation or pose irreversible risks in cases of natural disaster, political instability, offshore financial crisis and competition.


Prior to outsourcing the corporate must review its policies against the policies of the offshore destination to deal with issues such as cost, legal aspects, employees rights,

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