The issue of outsourcing has been the topic of debate among business corporations. As companies continue to outsource the business operations and processes to other countries, there has been a division among those who embrace outsourcing and those who are oppose to it. On one side, there are individuals who embrace outsourcing and feel that outsourcing is important for developing countries, as it brings in jobs and opportunities to people in other countries. On the other side, there people feel that outsourcing is hampering the employment opportunites in the home country. In the modern scenario, companies are using outsourcing as a strategic option to gain a competitive edge in today's marketplace. The aim of this paper is to highlight many problems that occur in an outsourcing relationship between two companies from two different countries. The purpose of this paper is to show that not all outsourcing relationships are successful and careful analysis should be under-taken before any outsourcing decisions are made.
[...] The task of maintaining computers did not have this effect. As mentioned earlier, one of the main reasons that Alcatel outsourced this particular task to HFS was due to the fact that Alcatel was overloaded with work. According to the Resource Scarcity Thesis, although Alcatel made the deal with Sun Microsystems which would bring a fifty-five percent reduction in cost to Alcatel, Alcatel faced problems of resource scarcity, such as labor, to get the task done (Douma & Schreuder, 2002). [...]
[...] First, a discussion of tacit knowledge and how it was transferred to HFS will be presented. It is interesting to note that the representative from Alcatel pointed out that the transfer of tacit knowledge was initially a success in this particular case. However, in the end, this success was overshadowed by the fact that HFS did not complete the task. The next part of this section will concentrate on the operational and structural risks associated with Alcatel's decision to outsource the task to HFS. [...]
[...] When Outsourcing Goes Wrong: A Look into the Outsourcing Relationship between Alcatel and HFS Introduction The issue of outsourcing has been the topic of debate among a wide variety of individuals for a while. As companies continue to outsource more and more business tasks and processes outside their native countries, there has been a division among those who embrace outsourcing and those who are oppose to it. On one end of the spectrum, there are individuals who embrace outsourcing and feel that outsourcing is important for developing countries, as it brings in jobs and opportunities to the population of these countries. [...]
[...] The aim of this paper is to uncover the many problems that can arise in an outsourcing relationship between two companies from two different countries. The purpose of this paper is to show that not all outsourcing relationships are successful and that careful analysis needs to take place before any outsourcing decisions are to be made. At the outset of this paper, a case outline will be presented that provides an overview of the companies involved and the task that was outsourced in this particular case. [...]
[...] Clearly, if the value of time discussed above is characteristic of the practices at HFS and Alcatel, there would have certainly been a clash and frustration felt between the two companies when they were engaged in their outsourcing relationship. After providing a general definition of the term ‘culture', a discussion of the global determinants of culture will now proceed. The global determinants of culture are: social structure, religious and ethical systems, language, education, and political and economical philosophy (Hill, 2004). The dimensions that will be the main focus in the proceeding paragraphs are social structure, religious and ethical systems, and language. [...]
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