Does global outsourcing improve firm performance

By: Prudence K. Magezi

Outsourcing is a strategic tool that many companies have embraced over the years. It especially picked up pace with the emergency of BRIC nations as the focal point of cheap manufacturing and cheap labour, which attracted many firms to outsource production to especially China. Using case studies, this essay will examine whether global outsourcing actually has a positive impact on firm performance or not. A number of scholars have argued that outsourcing does improve firm performance. For instance Domberger and Fernandez (1999) noticed that firms which outsourced had improved profitability as a result of lower costs. In a study they carried out on 7500 companies including multinationals like IBM and Anderson Consulting as well as local firms in Australia, results showed outsourcing of cleaning services saved firms an average of 46% over in-house performance of the tasks.

Price: 6.99 2.79
60% OFF
Save 4.19

Enter your details to get full access to all our free essays.

We will not send you spam, unsubscribe anytime:


Well, I would like to thank 123 Writing for helping me pass my final year dissertation. I passed with flying colors and would like to take this opportunity to say THANK YOU. Once I start on my Masters course, i will definitely be coming back as I know I will be dealing with people I know...

- David Yu

Thank you. I get the JUST PASS.

- Denson

u did a great job thank you

- Ming

I was impress with the research proposal good job!I will be sending you discuss main research.

- Ivy Sun

I appreciate your services. This semester was extremely stressful I was taking 14 credits working full-time and going to school full time. This semester has been very overwhelming and unbearable! I'm extremely grateful for you and your team... Thank you so much and have a blessed holiday!

- Chloe D