Additional contact information radojko lukic: university of belgrade, faculty of economics economic review. 10, issue 1, pages 63 75 abstract: modern strategic techniques have been increasingly applied in recent years, both in manufacture and retail, individually or concurrently. The main goal of their application in the retail business is continuous improvement, in particular by reducing costs of competitiveness and business and financial performance, while increasing customer satisfaction and meeting the needs of customers/consumers. One of the most important strategic techniques increasingly used not only in manufacturing but also in modern retail is outsourcing, which basically involves purchasing goods and/or services from independent external suppliers. The research in contemporary practice of the retail business has revealed that the application of outsourcing technique contributes to stronger commitment of management towards the activities that are the core of competitiveness, reducing costs, improving competitiveness and creating added value. Starting from the developed theory and conducted practical research, this paper emphasizes the importance and specific problems of application of outsourcing the strategic technique in the modern retail. Their knowledge is very important for an effective implementation of outsourcing as a function of improving overall performance in retail.

This is especially true for retailers in developing and transition countries, as it is the case, for example, with serbia, where the use of outsourcing is at a very low level compared to developed countries. In the future, because of its economic importance, outsourcing will certainly be more applied in the retail sector of respective countries, with the expectation of a growing trend at approximately the same level as it is in developed countries in europe and america. Problem solution: global communications the course of identifying solutions for a business can be intricate, particularly if the business is not sure of what steps to take to create success. To help assist in figuring out multiple dilemmas in global communications workplace, many thoughts are taken into consideration. Throughout the following paper, research will explain the issues, opportunities and ethical dilemmas that global communications has encountered.

Along with alternative solutions, the possible risk involved and the optimal solution chosen. Global communications end state goal, evaluation and implementation plan will all be addressed throughout the paper. Issue and opportunity identification 71 percent of americans are concerned that the current trend of outsourcing jobs to foreign countries will affect their job security or earning potential. Jobs are expected to be outsourced to india and china over the next several years. Source: business week, 2003 it is estimated that for every $100 of call center work offshored by us companies, $143 is invested back into the us economy. this figure is $133 for it services work and $142 for high end knowledge services like equity research, and risk management.

Source: business week, 2003 let's examine the pro and con arguments for economic outsourcing: we'll begin with the cons since those seem to be running rampant these days.

the argument against outsourcing

a search for outsourcing at amazon.com yields 1,708 books alone. The majority of these books are are written fron an anti outsourcing stance, with titles ranging from outsourcing america: what’s behind our national crisis and how we can reclaim american jobs by ron and anil hira, 2005 , to exporting america: why corporate greed is shipping american jobs oversea s by lou dobbs, 2004. While blue collar workers have traditionally been the first to lose their jobs to outsourcing, white collar employees are increasingly seeing their jobs move overseas as well. As a result, labor unions have been some of the most vocal critics of outsourcing, often claiming that companies’ sending jobs overseas to benefit from lower costs will lead to inferior labor laws an accusation often termed the race to the bottom. As mike gildea, a representative of the afl cio, explained in speaking about the countries receiving outsourced u.s. Jobs, more often than not, the labor standards are non existent or are not enforced.

Moreover, as labor lawyer daniel pyne notes, employees in foreign countries earn much lower wages and enjoy few, if any, of the protections enjoyed by their american counterparts. Thus, not only do critics believe outsourcing will render them unemployed, literally taking the food off their tables, but also that it will lead to an overall world decrease in labor standards usa today. So yes, some americans are facing unemployment from outsourcing, however, this fact leads to one of the greatest outsourcing myths: the u.s. As their household employment survey showed, 1.9 million more americans have been employed since the end of the last recession in november 2001. Moreover, proponents of outsourcing believe the picture of unemployment is not nearly as bleak as critics paint it. While the most startling estimate predicts a loss of 3.3 million service jobs between 20 and 2015, the real number is in actuality much closer to an average of 55,0 jobs lost per economic quarter.

Essay About My School Holiday

Here it is important to note that job loss is part of the normal economic cycle on average, 7.71 million americans are unemployed each quarter, and the estimated number of jobs lost to outsourcing equal only 0.71% of this total. Rather than focus solely on job loss, supporters of outsourcing believe it can bring great benefits to the economy as a whole and suggest the development of government sponsored retraining programs and other unemployment aid as a way to soften the blow to those whose jobs are affected the heritage foundation. For an indepth examination of the outsourcing debate, return to the top of this page and click on the menu options to the left. You'll explore more about the economic theory, data, and perspectives surrounding this issue. outsourcing is a strategic decision of a company to use an outside organization to perform work that is typically done within that company.

This strict definition of the term covers only activities that were once internal to the company and includes only the process of moving the activity to the outside. In this sense, the term can be defined as using a third party to service a particular product or using a technology provider to move into new delivery channels and markets. Outsourcing also includes managing the relationship between the buyer with its provider, or outsourcer, because nothing is more likely to lead to an unsuccessful venture than neglecting a partner lanz amp barr, 20, p.1.

Like traditional selection process, the outsourcing process includes all the steps of planning, selecting, and managing the service providers. In comparison with purchasing or contracting out, outsourcing, however, differs in the strategy that drives it. In general, it is a strategy that allows companies to focus their talent and resources on improving and expanding activities that generate revenue, minimizing the effort spent on maintaining the infrastructure that supports the core of the business while also exploiting the skills, technology of some suppliers to strengthen their core competency as well as maintain their non core sector murray amp kotabe, 19, p.794 leavy, 2001, p.47. _ _ the range of arrangements between purchasers and service providers highlights a variety of outsourcing forms. Depend on the length of contracting time and the level of risk share, outsourcing arrangement can be classified into four types: total outsourcing, selective outsourcing, strategic alliance sourcing and insourcing currie amp willcocks, 1998, p.122. Total outsourcing is when an organization chooses to contract out its service to a large single, preferred, trusted supplier. These contract usually last for five or ten years with the aim of nurturing partnership between the organization and that supplier.

Total outsourcing enable the organization to concentrate on its core business activities, and remove the burden of having to manage and control what it considers to be a non core service activity. However, total outsourcing carries with it the greatest interdependency between buyer and supplier and its success depends upon the development of a successful partnership between the two parties currie amp willcocks, 1998, p.126. The notion that a single vendor cannot possess world class capabilities in all areas of business leads to the view that companies should embark on selective outsourcing to multiple vendors. Selective outsourcing, sometimes called transaction based contracts, which are usually shorter, single contracts, with a supplier who compete with other suppliers for the business of the client kakabadse, a.