Outreach company

Outreach company

Outreach company is experiencing problems in managing data issues as the current system for managing data is outdated. Adopting a new system developed using cloudera platform is an ideal way to solve the challenge. However the move is inhibited because the company lacks experts. Therefore outsourcing would solve the problem.

OUTSOURCING.

Outsourcing refers to the practice of transferring activities traditionally done within a firm to third party providers. (Sen and Shiekl, 2006). The third party provider assigns its workers and systems to provide the services.

A COMPANY’S BACKROOM IS ANOTHER COMPANY’S FRONT ROOM.

Peter Drucker meant that a company should only engage only in its core business and hand over other activities to other companies. It will therefore concentrate on its main activity without other departments being compromised and thus cutting costs. For example, in the Outreach company, the cloudera platform for managing data is not the core activity. It therefore needs to outsource it to either of the two biding companies in order to concentrate on the main business. The biding firm will major on managing the outreach’s data. The long term advantage is that the company move on what it is best in without forfeiting other important duties.

MANAGEMENT ADVANTAGES, COST REDUCTION, AND RISK REDUCTION OF OUTSOURCING.

The public outreach company like other organizations needs to adopt an outsourcing plan as it has numerous benefits to the organization. Firstly, it enjoys management advantages as it focuses more on its core business enabling the workers to concentrate more on the main agenda. Increased efficiency is also attained as the outsourcing company is more specialized in the data storage area and hence offer better quality services. Services are also offered for a longer span of time especially when the outsourcing company is location in a different time zone. The outsourcing company can continue working long after the company’s employees have gone home. Secondly, the outsourcing company also enjoys cost reduction as the work is done at a very low cost in a very efficient way especially when the work is allocated to a more developed country. (Chenlung Yang, John G. Walker & Chwen Sheu-June 2011). Thirdly outsourcing also reduces on risks as the outsourcing company is specialized in the area cutting huge costs of labor.

OUTSOURCING RISKS CONCERNING CONTROL, LONG-TERM COSTS AND EXIT STRATEGY.

Outsourcing can sometimes have detrimental effects to Public Outreach company. Firstly, it can lose control because work initially done by the company is given to the outsourcing firm and have no control over it and thus the quality is affected. Control issues can also occur especially when the companies are far apart as monitoring performance and productivity is hard. Long-term costs in the long run can also be incurred. For instance, if the cloudera platform is outsourced to the biding company, it can expose the technology to other manufacturers thus being a threat to the competitiveness. Hidden costs can also be experienced thus increasing the operational costs. Exiting from the outsourcing strategy is a difficult experience. Legal claims relating to the termination process may take a long time. Emotions are also high as workers regrets losing their jobs and people casting blames on each other.

THE BEST OUTSOURCING COMPANY.

The Outreach company should consider outsourcing the work to the company from Mumbai, India which the bid was slightly lower. The cheaper amount have resulted from some factors. Firstly, the presence of large and educated workforce which is willing to work at a lesser price. The government also supports the outsourcing industry by tax reduction. Advancement in technology and infrastructure have also enabled provision of higher quality services at a cheaper price. Time difference in India compared to other regions have enabled a round-the-clock service delivery to customers. Confidence and trust accorded to India by other nations is a prove that the country is a dependable one and therefore Outreach company should incorporate the idea too. Distance does not matter as long as the services are adequately delivered.