tailieunhanh - Lecture Management practices: Lecture 30 - Dr. M. Shakil Ahmad

The main contents of the chapter consist of the following: Global outsourcing, exporting and importing, licensing and franchising, foreign subsidiary, managing in a global environment. | Management Practices Lecture-30 1 Recap Managing in a Global Environment Four key questions Global Perspectives Different Types of International Organizations How organizations go global (Important) Managing in a global environment 2 Today’s Lecture Global outsourcing Exporting and importing Licensing and Franchising Foreign subsidiary Managing in A Global Environment 3 4–4 Purchasing materials or labor from around the world wherever it is cheapest Global outsourcing 4 4–5 Examples of Global outsourcing labor-intensive manufactured products produced using low-cost Chinese labor Call centers staffed with low-cost English speaking workers in the Philippines and India IT work performed by low-cost programmers in India and Eastern Europe 5 Benefits of Global Outsourcing There are many benefits of outsourcing your business processes to destinations around the world. Some of them are: Cost advantages The most obvious and visible benefit relates to the cost savings that outsourcing brings . | Management Practices Lecture-30 1 Recap Managing in a Global Environment Four key questions Global Perspectives Different Types of International Organizations How organizations go global (Important) Managing in a global environment 2 Today’s Lecture Global outsourcing Exporting and importing Licensing and Franchising Foreign subsidiary Managing in A Global Environment 3 4–4 Purchasing materials or labor from around the world wherever it is cheapest Global outsourcing 4 4–5 Examples of Global outsourcing labor-intensive manufactured products produced using low-cost Chinese labor Call centers staffed with low-cost English speaking workers in the Philippines and India IT work performed by low-cost programmers in India and Eastern Europe 5 Benefits of Global Outsourcing There are many benefits of outsourcing your business processes to destinations around the world. Some of them are: Cost advantages The most obvious and visible benefit relates to the cost savings that outsourcing brings about. You can get your job done at a lower cost and at better quality as well. Due to the difference in wages between western countries and Asia, the same kind of work that is done over there can be done in India at a fraction of the cost. There is a cost savings of around 60% by outsourcing your work to India. Plus, the quality of the services provided is high thereby ensuring that low-cost does not mean low-quality. Increased efficiency When you outsource your business needs to an outsourcing partner, they bring years of experience in business practices and expertise in delivering complex outsourcing projects. Thus, they can do the job better with their knowledge and understanding of the domain. This leads to an increase in productivity and efficiency in the process thereby contributing to the bottom-line of your company. 6 Benefits of Global Outsourcing Concentration on core business areas Back office operations of a company require high maintenance and specialized attention. .