Importance of outsourcing: More expansion
For business to business activities it is highly recommended to have strong technological platform and activities to boost the business. Primarily this outsourcing phenomenon by the all firms in the market and vendors comes in the first priority. This way of outsourcing is not much expensive and is easy way to get the quality work. The five sources for outsourcing business are very important as follows:
• For overseas subsidiaries market
• Upstream vertical outsourcing
• Downstream vertical outsourcing
• Horizontal outsourcing for firm’s competitors
• Horizontal outsourcing to firm’s strategic business plan
The above mentioned outsourcing business services are the most used by the firm and out of the first one for overseas market the outsourcing is one of most important outsourcing activities. This time firm also outsourcing the employees form the other firm who are working in the Human resource placement or HR consulting services because these firms have more idea about the person’s checking skills rather than the information technology companies. In upstream outsourcing it is necessary to find out the new business and customers for that. It is also an important aspect of the outsourcing services.
In reality if a big company like ITC wants to setup a new office and want to have the idea of the target market then it may ask to BCG or other consulting companies to prepare the analysis of that market and complete a statistical based report to invest the money in new market. Therefore the outsourcing seems to be much important as ITC can do it effectively than the BCG.