In: Business and Management

Submitted By aika938
Words 4675
Pages 19
Content: 1. Introduction 2. Main part

3.1 Outsourcing definition and types 3.2 Outsourcing and its effect on business 3.3 Outsourcing pros and cons

3. Conclusion 4. Bibliography


The term outsourcing comes with many preconceived connotations, both positive and negative, thus the study of the mechanisms for effective use of outsourcing as a business development tool is also clouded with these perception issues. Much of the academic study of outsourcing revolves around trying to determine if it is a good thing or a bad thing, whether it is harmful to the local workforce or beneficial to globalization, and whether the average company has an obligation, moral or otherwise, to consumers in its home town, state or country to use labor within that region. None of those topics are pertinent to the discussion here and are therefore being immediately excluded. That is not to say that these are not pertinent and valid area of research in their own right, only that they are tangential to this discussion herein. This review will focus on outsourcing as it relates to control mechanisms within company development. Specifically, this paper will attempt to identify the link between control mechanism and outsourcing within the framework of managerial accounting.
Outsourcing, literally, is the use of an external source to perform a business function instead of having an employee do it using company equipment. In its simplest form, outsourcing is paying a cleaning firm for office maintenance rather than hiring a janitor. The complexity skyrockets with the complexity of the task being outsourced. In a derogatory sense, outsourcing is often used as a synonym for offshoring, the process of contracting with a firm in another country for the provision of some goods or services. For use in this discussion, control…...

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