Outsourcing, Offshoring and IT Project Management in Modern Economics
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Outsourcing, Offshoring and IT Project Management in Modern Economics
Outsourcing means delegating certain production functions or business processes to another organization that specializes in this area. This is carried out to achieve cost savings and other non-financial benefits. Despite the fact that terms outsourcing and offshoring are often considered synonymous but there is a difference between these terms. Offshoring is a subspecies of outsourcing, which means the transfer of certain functions abroad. It is possible due to the globalization of the economy, so that it became possible to manage business abroad. For many companies, offshoring becomes the foundation for survival in a competitive environment because it allows saving costs through the use of cheap resources, in most cases costs for labor. If the purpose of outsourcing is often not achieving the financial benefits, such as improving business processes, increasing efficiency, the purpose of offshoring in most cases is the cost reduction through the use of cheap resources.
Having considered the example of WW we can state that the core of the business is distribution of freight in the USA. All business processes related to the delivery, tracking, established routes, analysis of warehouses loads should not be delegated to outsourcing. It can degrade the effectiveness and the efficiency of business decision-making. In a competitive market customer satisfaction and speed of processing orders play a crucial role in the growth of the company. For the purpose of that president has determined significant goals, which implementation requires IT project management system. Newly hired CIO identified the main problems which can be solved by outsourcing of some functions. Specialists of IT department...