Business Process and Outsourcing

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Business Process and Outsourcing
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• Outsourcing is not a temporary solution but a
  strategic orientation of many enterprises at
  present and in the future. It helps reduce
  expense, improve core capabilities and product
  quality, reduce risk etc.

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Business Process
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Based on values created by the enterprise, we can
see 2 parallel processes Business
Process and Support Process.
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Business process starts from accessing market and
customer to required values, investigating,
researching approaches and organizing production,
distribution, logistics and serving. 
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This process directly creates added values o
customers and market. Support process is
responsible for active support in the areas of
human resources, finance, information,
relationship and institution.
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In business process, enterprise can have some
options

• Cover all steps (from marketing to serving)
  without outsourcing
• Initially, cover some steps (and outsourcing some
  other steps), gradually cover all steps.
  Outsourcing is just temporary.
• From the beginning, implement some steps and the
  rest are outsourced to other companies.
  Outsourcing is long-term development strategy.
• - Initially implement all steps. After a while,
  move from facilities management to outsourcing.
  Outsourcing is long-term development strategy.
  The enterprise goes towards partnership to bring
  about the highest added value to customers and
  marketplace.

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Common trend of the world
To do this, outsourcing process was implemented
by outsourcing entire production out of the
enterprise and keeping key steps including
research development, design and marketing.
Therefore, production management is outsourced to
other companies. Different from subcontracting in
the past, enterprise now takes charge of
production in the framework of "Co-subtracting".
It means that enterprise must possess high core
capacity level and skills in production.
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Expense for finishing a task is various and there
are large differences between developed and
developing countries, especially in labour costs.
In such labour-consuming areas as garment,
software etc. outsourcing is cost-reducing
strategy that many enterprises adopt.
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Enterprises in developed countries only focus on
market accessing and customer to learn more about
required values, investigate, research the
solutions, distribution and logistics in terms
of production, they use outsourcing service to
take the advantages of low labour cost.
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