Work, Outsourcing, Politics, Money, Current Events
SOURCE: Baseline
Outsourcing: What Ratio Is Right?
By Paul A. Strassmann
What a company purchases from suppliers of goods or services defines the amount that firm outsources.
Innovations in global commerce have lowered the costs and expanded the reach of purchasing transactions. This has made it possible to search for the lowest costs of materials, components and assemblies anywhere.
Companies find profit in divesting work whenever pay and overhead can be replaced by more efficient sources of supply.
But what is the right ratio of outsourcing for a company?
A company's "outsourcing ratio," defined as purchases divided by sales, has become an indicator of the extent to which a firm has shrunk the scope of its internally managed activities.
Unfortunately, none of the generally accepted accounting or financial reports reveals how much a company has placed...
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(Also niote that there is a plug in for Excel to calculate how much outsourcing you can do and be productive
http://www.baselinemag.com/article2/0,1397,1776165,00.asp
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For more, click on the link provided...