Outsourcing is a term known to everybody today. It is a very popular political issue in United States. Outsourcing means a sort of subcontracting a third party for performing a remarkable job. It is a contract given by a company to another one to provide a product or some services which otherwise was to be provided or build by the employees of the company giving the contract. Outsourcing helps to provide services to the customers even when the company itself is physically not reachable by the customer and by doing that it makes the job of the companies (Buchholz, 2004). It has been observed that executives today face a host of unprecedented changes and trends. These changes include the need to be global, the need to grow without using more capital, the need to respond to the threats and opportunities of the economy, an aging workforce, reduced costs and battle for consumer thinking (Bowersox, 2013).
Some of these trends are that outsourcing is when an organization transfers the ownership of a business process to a supplier. It is based on the release of an activity, which is not part of the core skills of an organization, to a specialized third party. For main or core skills means all those activities that form the core business of the company and which have competitive advantages over the competition.
The paper analysis the strategies and impact of outsourcing and it also discusses General Electric outsourcing implementation.
Discussion and Analysis
About The Company
General Electric Company or GE is an American multinational conglomerate based in Schenectady, New York and is headquartered in Fairfield, USA. The company has four segments: Energy, technology Infrastructure, Capital Finance, Consumer and industrial. General Electronic (GE) is a more diversified infrastructure, finance and media company in the World's toughest challenges. In the year 2009, GE delivered solid results despite the tough economic climate with the earnings of about $11.2 billion. It is a fact that GE, a pioneer of outsourcing and there are bringing American manufacturing back to life. The company ranks third in the list of the largest publicly traded companies, and is the world's largest non-financial TNCs, as well as major media companies (Olive, 2004).
The level of customer focus at General Electric is at par with the organizations objectives. The organizations information needs to be assessed so as to develop an efficient and effective ...