Outsourcing

Question 1

outsourcing: what

Answer 1

• contracting out a business process to another party

* most usual to another country where costs are lower

Question 2

outsourcing: history

Answer 2

• when companies started to complete globally

Question 3

outsourcing: benefits

Answer 3

• cost saving, cheaper labor, facilities, tax laws
  
  • can insource skills
  • diversity of employees

Question 4

outsourcing: businesses that use it

Answer 4

• Netflix stores everything in Amazons web services
  * but have a backup plan if something happens with amazon servers
  
  • Microsoft call center in India

Question 5

outsourcing: vendors

Answer 5

• Dropbox

* Amazon web services (pay for what you use)

Question 6

outsourcing: risks

Answer 6

• consider location, language, specialization, security