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Why some companies are using outsourcing and some are not - Summary

  • Operations Strategy

Steve Downton, Downton Service Management Consultants Ltd, Noventum Group

Outsourcing their service operations has seemed an attractive option for some companies. Research shows that all the major high tech companies use outsourced operations to some degree for specific regions or products. Most of the larger companies use outsourcing quite discreetly, as they do not always want to advertise the fact, for a variety of reasons.

Many businesses are considering outsourcing in a limited way, to test for themselves which is the correct course for the service market to pursue and to judge the best option. Concern over choosing outsourcing as a route is often focused on the loss of direct contact with the customer, and the uncertainty of whether another supplier really/truly can make better provision (Price/Service). Such concerns result in many companies not choosing outsourcing, opting instead to achieve flexibility.

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