benefits of outsourcing: macro

I need some assistance with these assignment. benefits of outsourcing: macro Thank you in advance for the help!

“Outsourcing is the latest buzzword these days for the cost and quality conscious companies all over the world, who are outsourcing their non-core business processes” (Hailey). Outsourcing involves a contract with a third party and includes a set of agreements between the supplier and the buyer company. Once an agreement is reached, the supplier and the buyer operate the business processes and dealings in accordance with the agreement. Those companies which provide the service to a buyer company regarding any business operation is known as a service provider company.

Some of the common tasks and activities that are outsourced to the supplier company include data entry, billing services, and marketing (Mclvor).There are a lot of valuable macro benefits associated with outsourcing business operations to a supplier company. Outsourcing is one of the most important parts of any organization or industry. There are many companies that believe in outsourcing because it helps them in cutting the costs of manufacturing and labor. Some of the most observed benefits of outsourcing include saving money, cutting costs, increased speed of production, increased efficiency, access to specialized supplier companies, more concentration on the core business activities, improved customer satisfaction, achieving market domination, and improved compliance and security.

In any domestic country, outsourcing results in less low skilled and more high skilled work. It is because when companies see that they have not got any high skilled labor regarding any specific business operation, they outsource that business operation to those companies which are highly skilled in those processes. High-skilled work is also very important in achieving a competitive edge in the market and this task can be perfectly achieved through outsourcing. Free trade is another aspect of outsourcing in which companies can import the parts of products from&nbsp.other countries.

Those parts which are more costly to be produced in a home country can be imported from other countries where labor rate and manufacturing cost is less as compared to the home country.&nbsp.