After you have completed your Reading and Learning Activity, respond to the Disc
ID: 382221 • Letter: A
Question
After you have completed your Reading and Learning Activity, respond to the Discussion topic. Discussion Topic: Team Exercise About Outsourcing Why have outsourcing initiatives become a key element in shaping functional tactics for today’s global companies? As a team, choose a Fortune 1,000 company that has adopted the use of outsourcing and has done so successfully. Work with your assigned teammates in the Team Discussion Area to create a collaborative post in this Discussion Board addressing the outsourcing question per your team’s company of choice. Support your finding through proper citation. Take time to review the responses of your classmates’ team and provide your feedback. Cite your sources in APA format and style. Once your team has fully addressed the topic, please post your team response to the General Discussion. Only one team member please to post. Please note, you will be broken up into teams for this Discussion and only your team members will be able to see and participate in the Discussion. In this team Discussion on outsourcing initiatives, you will engage in developing the following professional competency: Working effectively in teams to meet project deadlines
Explanation / Answer
Company: GE
GE has leveraged outsourcing as a strategy in the late 2000’s and used it to cut costs and achieve the process efficiency.
They outsourced most of the backend operations such as follows:
These are the non-value add processes for the company and they are already huge, so outsourcing these functions saved them a lot of capital and also made the processes more efficient and faster.
The idea came from the analysis that now this is a world of outsourcing the non-critical work to third parties so that the companies can cut their costs and focus on more core activities.