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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 698 |
Essay's paper body
Companies can minimize structural risks, however, through supervising work and tracking providers’ efforts in real time. Although there is no definite way organizations can fully deter from all risks, planning ahead and following these recommendations will help to minimize them.
Choose the Right Organizational Form
Low Medium High
High Outsource to service provider located nearby (nearshore) Set up captive center nearby or onshore Execute process in-house and onshore
Med Outsource to service provider over time Use extended organization offshore, but monitor closely in real time Set up captive center offshore
Low Outsource to local service provider Use extended organization offshore Use extended organization offshore, but conduct frequent process audits
Many organizations disregard all of the available options when offshoring services...
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Ultimately, they end up using organizational forms unsuitable for their business purposes. Often, they analyze too narrowly, looking only at costs, while failing to examine other factors that might sway the cost/benefit analysis in favor of keeping services in-house. Research has shown that both location and organizational structure have played a major role in determining the fate of offshoring strategies...
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