MANAGING in the

NEW WORLD

Outsourcing is an often derided term associated with causing irrevocable harm when done at inopportune moments. If properly strategized though, it increases productivity by enabling managers to focus on more creative aspects. There are some aspects all firms must consider thoroughly before engaging in outsourcing. One has to study the return on investment and never outsource core operations. There are some aspects, outsourcing of which may lead to reduction in business reputation. These must obviously be avoided. Innovative processes must never be outsourced. There must be regular communication between the central firm and the outsourced activity locations. Finally, one has to realize that outsourcing is a calculated risk and there is no guarantee of success. Once these steps are followed, rewards are usually not far off.

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