Global Supply Chain Business & Marketing Essay Paper (Essay Sample)

[Name of Student]
[Global Supply Chain]
[Date of Submission]
Introduction
Outsourcing is one of the common business practices, which involve taking services or products from a third party supplier. A number of companies consider the option of outsourcing non-core activities in the quest of cutting cost and maximising efficiency. However, there is a need to critically evaluate the potential benefits and disadvantages associated with outsourcing non-core activities. This essay aims to critically assess the statement “organisations should always outsource their non-core activities for the benefit of improving customer satisfaction”. Santander Commercial Bank has been taken as an example, which outsourced its call operations to 2 centres in India, one in Pune and other in Bangalore.
Discussion
Williamson (2008) highlighted that outsourcing refers to a specific practice in which organisations hire an individual or a company to provide services, handle operations or perform tasks, which are executed usually. Outsourcing has its own benefits and disadvantages, which should be considered by organisations.
Outsourcing Decision
The outsourcing decision tends to be taken by the management in most of the organisations. Considering the non-core activities, there may be certain aspects associated with the process of outsourcing (Williamson, 2008). Consider the Santander commercial bank, the decision to outsource the non-core activities was taken due to benefits and costs; hence the management focused on saving money by utilising the best possible option. Mohiuddin & Su (2013) argued whether outsourcing can be considered efficient economically because of the presence of transaction costs. Some of the organisations may go for the option of outsourcing non-core activities; however, it indeed has potential disadvantages which may be neglected initially by the organisation.