InstitutionGlobal Market Variables

Recent years have seen a rise in the popularity of outsourcing

Important corporate tasks in many organizations. Companies are considering outsourcing parts of their procedures cautiously but definitely. It has made it possible for the firms to concentrate more on offering services that are convenient and quick to generate. The creation of high-quality services relies heavily on the outsourcing of difficult services to experts and specialists in the relevant fields.

Legal services and expert advice are among the services that are growing in demand

According to Lacity, Burgess, and Willcocks (2014). Sometimes complex problems come up that call for specialized understanding of the relevant field. According to Kremic, Icmeli, and Rom (2006), there are three factors which have been important influencers of outsourcing of services namely cost, strategy, and politics. These factors should be considered cumulatively as they are closely related. The first one, Cost, is an essential item because it affects the profitability and an organization needs to find the various ways through which it can save on cost. The strategy enables the organization to be able to analyze and consider the impact of the outsourcing decision to the attainment of its goals. Political reasons are crucial because it challenges the team to be accountable and provide better services. Outsourcing will, therefore, aid in efficient and effective services.

According to Hietalahti and Kuoppala (2009), there are various services which could be outsourced

They include finance, human resource, and logistics. These services alongside legal services require skilled personnel for proper execution of tasks. It is an essential process because it enables reduction of costs which results in more profit, efficiency, utilization of experienced and skilled personnel and time-saving.

References

Hietalahti, J., &Kuoppala, S. (2009). Outsourcing decision-motives, risks and decision factors.

Kremic, T., IcmeliTukel, O., & Rom, W. O. (2006). Outsourcing decision support: a survey of benefits, risks, and decision factors. Supply Chain Management: an international journal, 11(6), 467-482.

Lacity, M., Burgess, A., & Willcocks, L. (2014). The Rise of Legal Services Outsourcing: Risk and Opportunity. A&C Black.