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Outsourcing is reshaping how business operates In order to determine how outsourcings affects the management of business operations we will begin by defining outsourcing and examining how it has changed in the recent years Next we will look at what type of operations are usually outsourced and how to take full advantage them Then we will address what types of business operations are best kept at home and why Finally we will examine problems or pitfalls with outsourcing including their effect socially and politically American Heritage dictionary defines outsourcings as The procuring of services or products such as the parts used in manufacturing a motor vehicle from an outside supplier or manufacturer in order to cut costs In the pastoutsourcing predominately affected the manufacturing sector Cheap manual labor overseas made it profitable for corporations to shift many unskilled tasks to foreign markets Today outsourcing is in a transformation and encompasses more than just manufacturing Corporations are beginning not only to outsource unskilled manual labor tasks but more highly skilled positions are beginning to be outsourced Examples include financial services human resource services secretarial activities information technology services and sales and marketing Is it smart to take complete advantage of the cost savings associated with outsourcing and to outsource as much as possible Lets take a closer look at which business operations are good potential candidates for outsourcing Randy Chott of CIO Magazine argues that globalization is creating a global workforce and that the only jobs that are safe are hands on jobs Policemen firemen doctors and dentists This is an over exaggeration but provides a look at how vast outsourcing has become Outsourcing is an increasing important portion of business today and business managers need to examine their corporations to determine what if any outsourcing is right for them When trying to decide what operations are ripe for outsourcing business managers should focus on items inside a corporation that can be digitized and easily and
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