Strategic Outsourcing, Sloan Management - Article Review Example

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Middlebury College
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Outsourcing is a tactical use of outside resources to carry out activities that are to be handled by internal resources and staff. The organization contracts out functions to efficient and specialized service providers. The difference between subcontracting and outsourcing is that for outsourcing there is a lot of restructuring of some business activities, for instance, transferring of staff to a specialist from a hosting company. The aim of outsourcing majorly is to make a company more competitive by remaining focused on its fundamental competencies.

The company outsources because of various reasons. Firstly, the companies outsource for them to control and reduce the operating costs. Secondly, outsourcing is done by companies to enable the company gain access to world-class capabilities. Equally, the other reason why companies outsource is to improve the focus of host the company. Fourthly, outsourcing provides free internal resources available for other purposes. When there is insufficient resources availability internally, companies apt to outsource. Finally, companies outsource to share the risks with a partner firm.

A typical outsourcing program process has four main aspects. They include; initiating of the program, implementing the service, final agreement, and closure of the program. For outsourcing to be successful there has to be an understanding of the company's objectives and goals. Equally, there has to be a properly structured contract and selection of the right vendor. There also has to be open communication and senior executive involvement and support.

When a company decides to outsource, there are potential benefits it is aiming at and likely to get. Firstly, the company can renew its focus on its core business. Secondly, the company can grant employees with career opportunities in a company with specialty. The company is also likely to reduce some costs and avoid capital investment. Equally, when outsourcing the company is exposed to access of skills, skills retention, skills upgrade, project enhancement and improved services that lead to a company achieving its goals and objectives.


Work cited

Quinn, James Brian, and Frederick G. Hilmer. "Strategic outsourcing." Sloan management review 35.4 (1994): 43.


Perceived Information Security, Financial Liability and Consumer Trust In Electronic Commerce Transactions

The transactions we undertake which are in the form of electronic commerce in many occasions subject to numerous information security extortions. From the article, it is evident that consumer trust in all electronic commerce is mostly influenced by professed information security and extricates it from any other dispassionate assessment of threats. The article gives all the mechanism that will be used in encryption, authentication, protection, and verification. All these proponents are used as antecedents which are alleged information security. The mechanisms that are used for encryption are derived from the solutions arrived as a result of security threats which are detectable to consumers thus they underwrite to real consumer perceptions.

From this article, it is apparent that most consumers show a relationship that is significant between trusts in electronic consumer transactions and customers' supposedly information security. The article also explores the financial liability role when it acts as a surrogate for any perceived security. Thus, the article indicates that there is minimal if not less effect of a liability financially on consumers' trusts when it dawns on the electronic consumer.

The relative strength that is perceived as security when it comes to electronic consumer transactions is not aligned to either financial liability or retailer reputation. From this article, I can attest that limited financial liability can be a surrogate for any information that is concerning security that is linked to consumer trust building. Equally, from this article, it is apparent that financial liability which is weak renders minimal support to consumer confidence on electronic consumer transactions. Most weak effect on consumer trust on EC transactions in many occasions involves a lot of risk such as privacy and not the monetary risk ones.

Work cited

Chellappa, Ramnath K., and Paul A. Pavlou. "Perceived information security, financial liability and consumer trust in electronic commerce transactions." Logistics Information Management 15.5/6 (2002): 358-368.


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