Businesses in every arena have to commonly outsource some of their functionality

Question

Businesses in every arena have to commonly outsource some of their functionality to be able to provide services and fully operate. What considerations should a business take before choosing any third party provider? What types of agreements should be in place before a relationship begins?

When a new service or items is going to be sold or provided often time a prototype or some working example needs to be created. Why would this be important and what should be looked for before going into full production or offering?

Explanation / Answer

Outsourcing in business is a very common phenomenon and organizations generally outsource various facilities based on the same because they need to have the best quality in the products or service they deal with. While selecting and hiring a third party the organizations have to be very careful and after a round of validations is being done they are selected. The parameters based on which this is done are:

1. Organization status in the industry

2. Brand Value of the organization.

3. The cost to the company that the organization may incur.

Agreements are very much necessary while hiring or contracting a third party and in this context that should be done effectively where the agreement should be based on the terms and conditions agreed upon by the parties involved and then the agreement should be protected by a registration letter that will ensure that the terms and conditions mentioned in the agreement are agreed by both the parties by signing the registration letter.

Offering a new service or product is quite critical for a business and the business organization needs to be aware of what trhey are offering and in order to understand the fate of the product or service, generally promotional offerings are made and the customer reaction needs to be noticed in this context because that will actually reduce the risk of a huge loss. If the promotional offering or the trial offer that has been forwarded is successful, then the product can be launched in numbers but if the success rate of the trial offering is a bit lower than the expectations, then the organization can actually think of making a change.

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.