Evaluate the need for outsourcing and discuss its limitations.
The need for outsourcing are as follows :
(a) Focussing of Attention : Business firms are perceiving the usefulness of focusing on just a few areas where they have definite capability or core competency and contracting out the remaining activities to their outsourcing partners. This enables them to focus their attention on some selective activities.
(b) Quest for Excellence : Outsourcing enables the firm to chase the excellence in two ways. Primarily, they excel themselves in the activities in which they are good enough so that they excel by expanding their capabilities. In the quest for excellence, it is important not only to know what you would like to focus on, but also what you would like others to do for you.
(c) Cost Reduction : Global competitiveness required not only the quality, but also reduction in cost. Division of labour and specialization minimize cost and improves quality. This happens due to the economics of large scale accounting outsourcing partners.
(d) Growth through Alliance : To the extent, we can avail of the services of others, our investment necessities are reduced, others have invested in those activities for us which helps in expanding rapidly. Apart from financial returns, outsourcing eases inter organisational knowledge sharing and collaborative learning.
(e) Fillip to economic development : Outsourcing revives the entrepreneurship, employment and exports in the host countries thus, it helps in economic development of the country.
(f) Limitations of Outsourcing Confidentiality : Outsourcing depend on sharing a lot of vital information and knowledge. If the outsourcing partner doesn't receive the confidentiality and passes it on to competitors which can harm to interest of the party that outsources its processes. If outsourcing involves complete process, there is a risk of outsourcing partner starting up a competitive business.
(ii) Sweat shopping : As the firms that outsource seek to minimize their costs they try to get maximum benefit from less cost, man power of host countries. The firm that go in for outsourcing look it is doing stills rather than doing the development of thinking skills.
(iii) Resentment in the home countries : In the course of contracting out, manufacturing, marketing, research and development of IT based services what is ultimately contracted out is employment or the jobs. If the home country is facing the problem of unemployment, may cause resentment back in the home country.
What factors are to be considered while starting a business? Explain.
Discuss the development of indigenous banking system in Indian subcontinent.
What were the different types of Hundi in use by traders in ancient times?
Define Industry. Explain various types of industries giving examples.
Why is business considered as economic activity?
List the major exports and imports in ancient India.
Define business. Describe its important characteristics.
State the different types of economic activities.
Discuss the limitations of electronic mode of doing business. Are these limitations severe enough to restrict its scope? Give reasons for your answer.
Define services and goods.
List the major exports and imports in ancient India.
State the different types of economic activities.
How does outsourcing represent a new mode of business?
Define Industry. Explain various types of industries giving examples.
Compare business with profession and employment.
What are services? Explain their distinct characteristics.
1. A government company is any company in which the paid up capital held by the government is not less than
(a) 49 per cent (b) 51 per cent
(c) 50 per cent (d) 25 per cent
2. Centralised control in MNC’s implies control exercised by
(a) Branches (b) Subsidiaries
(c) Headquarters (d) Parliament
3. PSE’s are organisations owned by
(a) Joint Hindu family (b) Government
(c) Foreign Companies (d) Private entrepreneurs
4. Reconstruction of sick public sector units is taken up by
(a) MOFA (b) MoU
(c) BIFR (d) NRF
5. Disinvestments of PSE’s implies
(a) Sale of equity shares to (b) Closing down private sector/public operations
(c) Investing in new areas (d) Buying shares PSE’s
6. The equity-based joint venture does not include
(a) Cooperative development (b) Company
(c) Partnership (d) Limited liability partnership
What do you understand by maritime trade?
What is e-banking. What are the advantages of e-banking?