Monday, September 13, 2010
Outsourcing's short-term gains may be outweighed by long-term costs
12:20 AM |
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Skyline College |
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Outsourcing is to a company's viability as high unemployment is to a job-based economy. At least it can be, according to a new study co-authored by University of Utah David Eccles School of Business researchers that is an explicit heads-up to companies bent on cutting corners — and often jobs — in a desperate attempt to cut costs. The strategy of bolstering a firm's bottom line through outsourcing manufacturing, quality control and even customer service holds as much long-term risk as it does short-term financial or market position gain, according to Lyda Bigelow, an assistant professor of management whose ongoing research focuses on strategies businesses use to expand and how they handle, or often mishandle, change. Despite the hazards of losing quality control through outsourcing, which has a long history of being an Achilles' heel at many companies, outsourcing is booming.
The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).
The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).
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September
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