HARVARD RESEARCH PAPER

Change and Continuity in Contemporary Business

Table of Contents

Introduction3

Impact of globalisation on business operations and outsourcing4

Increase in competition6

Equal Opportunity Globalization and Outsourcing6

Changing Nature of Technical Work7

Collective Activism Levelling the Playing Fields7

Focus towards Innovation8

Logistics and Support11

Strategies Adopted by General Electric12

Global Expansion and Presence12

Market Capitalization and Cost Effectiveness13

Cultural Sensitivity13

Innovation14

Competitive Advantage through Technology Efficient Strategies14

Diversified Technology16

Conclusion16

References18

Change and Continuity in Contemporary Business

Introduction

Outsourcing can be defined as subcontracting a production process to a third-party company. As a result of outsourcing, firms move entire business functions to external service providers. Outsourcing can significantly increase the efficiency of a company and give it the ability to attract almost any staff to implement a wide range of services necessary for the business during that time. Outsourcing is a practice which is being carried out by large companies. The purpose of outsourcing is to reduce the cost of the processes significantly as the company performs that task through external sources. Small and medium size businesses use outsourcing because it is less time consuming and less difficult. In this way, companies can focus more on the important core functions of the company. Before outsourcing, a company has to keep in mind some tips for making the decision: First, the company must make sure that the outsourcing company is reliable and dependable (Carmel, 1). The company must check on the qualifications of the staff and the references provided by the outsourcing company. Second, the company must be clear about its expectations for the outsourcing company. It is particularly important that goals and deliverable are clearly outlined to avoid confusion. Third, the company must ask the outsourced company about the past projects that they have done. This will help the company to get an idea about the working attitude that is being outsourced. At first, company should start with small projects and see from there. These tips should be kept in mind when hiring an outsourcing company. A company avails outsourcing in order to make its business more successful. Therefore, choosing an appropriate outsourcing company is the first step towards success (Carmel, 3).

This paper discusses the benefits of outsourcing with regard to the manner in which the implementation of outsourcing helps to cut costs and thereby provide benefit to the organization through a multitude of dimensions. This paper gives an account of the impact of globalization on the outsourcing operations and general business practice. It refers to the strategies adopted by General electric in carrying out the global outsourcing operations.

Impact of Globalisation on Business Operations and Outsourcing

Outsourcing has changed the way global business is conducted. Before, outsourcing was just a means to reduce the operational costs of the company. Now, companies need to have more reasons than cutting costs in order to meet the additional demands of companies. Companies which outsource have various reasons why they do it. According to researches, the primary force behind and the most important reason why companies outsource is to reduce the cost of operations (Alan, ...