Management idea: Outsourcing 唐付静

Definition of Outsourcing Outsourcing is the act of one company contracting with another company to provide services that might otherwise be performed by in-house employees. These jobs are handled by separate companies that specialize in each service.

The main types of outsource Total outsourcing Partial Outsourcing Production outsourcing Sales Outsourcing RandD outsourcing HR Outsourcing Managed Service Integrality Function

Advantages and Disadvantages Advantages: 1 、 It often saves money, 2 、 It allows the enterprise concentrate on core business while having the details taken care of by outside experts Disadvantages: 1 、 Overseas enterprise responsibility ， 2 、 The problem of intellectual property 3 、 The problem of contractors’ loyalty

Examples Apple makes most of its components outside America. Foxconn is one of its suppliers. Advantages: There are much cheaper labour force in China, so outsourcing can save much cost; There is more time left for Apple to focus on its core business and to do more research work, which do better to develop Apple’s competition. As a result, Apple gets a big success.