Essay by didieve November 2006

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Response to Task B1:

According to Wikipedia, Outsourcing is defined as the "the process of transferring an existing business function, including the relevant physical and/or human assets, to an external provider in order to strategically use outside resources to perform activities previously handled in-house."(2006). It takes place when an organization transfers of a business process to a supplier (2006). Leaders of any organization must understand the company's overall strategy and the impact the decision of outsourcing can have as a whole in terms of morale, long and short-term goals and the financial options for the organization. Global Communications lacked plans on how to handle the outsourcing they wanted India and Ireland to take over. They did not consider having all stakeholders involved in the decision-making, which made it difficult for the outsourcing to be successful. They needed to communicate and have involvement from the Union when making their decisions to avoid any resistance.

All stakeholders of Global Communications needed to be aware as to why the changes needed to take place so that the organization could globalize and keep competitive with the telecommunications industry.


Wikipedia; Outsourcing, 21 September 2006 retrieved on September 22, 2006

Response to Task B2

1. American Express

American Express is known to be one of the best global providers of travel-related and financial services. They have been described as one of the best companies in captive centers also known as outsourcing. They started to outsource transaction processing in the 1990's and now today they have outsourced their customer service. Their main center is in Gurgaon, India where they offer voice and data based customer services, fraud and risk modeling, and financial processing to customers worldwide (Mivar Press, 2004). In 1993 American Express decided to open it's third shared service center. The cost per transaction lowered...