Vocabulary【Benefits of Outsourcing】
Focus on core competencies.
When a company outsources its unimportant business processes, it can focus more on its core competency.
For example, an architecture firm's core competency is designing buildings, not managing an IT network.
By outsourcing its IT needs to a third party, it may hire more architects to increase its expertise.
competency: 能力
expertise: 专家
Reduce operation costs.
Companies in developed countries often outsource many jobs to developing countries.
These outsourced employees are usually paid less than those in developed countries.
For example, a computer company based in the US may outsource its customer service to Asia to save on labor costs.
Access highly specialized talent.
Outsourcing allows companies to access highly specialized talent that would otherwise be difficult to recruit.
It offers an immediate solution to fill the need for new staff when opening up new services.
For example, a small technology start-up may outsource its engineering work to another country because it needs highly skilled engineers.
Share risks with a partner company.
Companies may outsource to share risks with another company.
If all work of a company is done in one factory or office, a serious incident may put the company out of business.
For example, a strike may put a company's factory out of action for a period of time, completely eliminating the company's production.
If the workload is spread across multiple factories through outsourcing, a problem with one may not affect the others.
incident: 发生的事
Question
- By outsourcing certain functions, a company can allocate more resources to its core competencies.
- HRM System AG can focus on its core competency of providing advisory services while outsourcing its account operations.
- Sun Microsystems saves on costs by using third-party vendors to repair hardware and train users.
- WhatsApp needed to keep operations costs low while finding new tech talent, so it outsourced to Eastern Europe.
advisory: 咨询的
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