In outsourcing which of the following internal activities

1. Strategic Planning and Decision Making

One of the most critical internal activities that a company should keep in-house is strategic planning and decision making. These activities require a deep understanding of the company’s mission, vision, and values. They also require a comprehensive analysis of the market, competition, and trends. Companies need to have a clear and concise strategy to guide their operations and decisions.

2. Customer Service and Support

Customer service and support are essential for any business. They help companies build strong relationships with their customers, resolve issues promptly, and improve customer satisfaction. These activities require a deep understanding of the customer’s needs, preferences, and pain points. Companies need to have a team that can respond to customer inquiries, troubleshoot issues, and provide personalized support.

3. Intellectual Property and Legal Compliance

Intellectual property and legal compliance are critical for any business. They ensure that the company’s assets are protected, and its operations comply with relevant laws and regulations. These activities require a deep understanding of the company’s intellectual property rights, patents, trademarks, and copyrights. Additionally, companies need to have a team that can stay up-to-date with changes in laws and regulations, navigate complex legal issues, and provide guidance on compliance requirements.

4. Human Resources Management

Human resources management is a critical internal activity that involves recruiting, hiring, training, and retaining employees. These activities require a deep understanding of the company’s workforce needs, goals, and objectives. Additionally, companies need to have a team that can develop policies, procedures, and programs that support employee well-being and productivity.

5. Financial Management and Accounting

Financial management and accounting are critical internal activities that involve tracking expenses, managing cash flow, preparing financial statements, and analyzing financial data. These activities require a deep understanding of the company’s financial operations, budgeting, and forecasting. Additionally, companies need to have a team that can ensure compliance with relevant accounting standards and regulations.

6. Information Technology Management

Information technology management is a critical internal activity that involves managing the company’s technology infrastructure, systems, and applications. These activities require a deep understanding of the company’s technology needs, goals, and objectives. Additionally, companies need to have a team that can develop and maintain secure and reliable technology systems that support business operations.

Case Studies:

1. IBM Outsourcing:

IBM is a leading IT services company that provides a range of outsourcing services, including infrastructure management, application development, and business process outsourcing. However, in recent years, IBM has faced criticism for its outsourcing practices and the impact they have had on its workforce. In 2018, IBM laid off thousands of employees and announced plans to shift more of its operations to India and other countries. This move was met with opposition from labor unions and worker advocates who argued that it would lead to job losses and lower wages for IBM workers.

2. Zappos Outsourcing:

Zappos is an online shoe and clothing retailer that has been highly successful in recent years. While Zappos outsources some of its operations, such as customer service and support, it keeps other activities in-house, including marketing, branding, and innovation. In 2013, Zappos CEO Tony Hsieh wrote a blog post about the importance of keeping certain activities in-house, arguing that these activities are critical for building a strong company culture and maintaining a competitive advantage.

3. Netflix Outsourcing:

Netflix is a streaming video service that has been highly successful in recent years. While Netflix outsources some of its operations, such as content production and marketing, it keeps other activities in-house, including technology development and innovation. In 2017, Netflix CEO Reed Hastings wrote a blog post about the importance of keeping certain activities in-house, arguing that these activities are critical for building a strong technology team and maintaining a competitive advantage.

Expert Opinions:

According to Forbes, outsourcing is not always the best option for businesses. In some cases, keeping certain activities in-house can lead to better outcomes and a more efficient operation. For example, keeping customer service and support in-house allows companies to provide personalized support and build strong relationships with customers.

According to Inc., outsourcing certain tasks can be beneficial for small businesses that lack the resources and expertise to handle these activities in-house. However, outsourcing too much can lead to communication gaps, cultural differences, and language barriers that can negatively impact the company’s operations and productivity.

FAQs:

1. What are some examples of internal activities that should be kept in-house?

Strategic planning and decision making, customer service and support, intellectual property and legal compliance, human resources management, financial management and accounting, and information technology management.

2. How can outsourcing certain tasks negatively impact a company’s operations and productivity?

Outsourcing certain tasks can lead to communication gaps, cultural differences, and language barriers that can negatively impact employee morale and productivity. Additionally, outsourcing too much can lead to errors, miscommunication, and non-compliance fines that can negatively impact the company’s financial health.

3. What are some examples of companies that have faced criticism for their outsourcing practices?

IBM, Caterpillar, and Dell have all faced criticism for their outsourcing practices in recent years.

4. How can businesses determine whether to keep certain activities in-house or outsource them?

Businesses should consider factors such as their workforce needs, goals, and objectives, as well as the potential risks and benefits of outsourcing certain tasks, when making this determination.