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How does outsourcing make the quality of products or services better?
Wiki User
∙ 9y ago
There is little to no evidence that outsourcing business processes improves quality of goods or services. Improvements in technology quality and greatly reduced costs in deploying technology implementation has (theoretically) reduced labor training costs, allowing processes that once took skilled labor to be performed by less skilled labor.
There is some argument that outsourcing allows manufactures to more rapidly design, test and produce new goods, but the arguments are substantially based on the proposition that social costs are not a direct cost element in off-shore manufacturing (where environmental, workforce and other social impact costs from manufacturing are not monetized as a cost to the manufacturer).
Improvements in services from outsourcing has been more problematic. Several studies indicate that the only "improvement" in service provision is a reduction in labor costs with little to no improvement in service quality. In many instances, service quality has deteriorated when service labor was off-shored.
As technological improvements reduce capital equipment costs and allow for the easy movement of processes from country to country, manufacturers will chase low-cost labor in the unending quest to maximize profits through reduction in unit costs.
Wiki User
∙ 9y ago
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Total Quality Management (TQM) is a management philosophy that involves the whole organisation taking responsibility and ensuring the Quality of their deliverables/products/services and the processes by constantly looking to improve the effectiveness of their operational processes at every stage and get to a right first time state. TQM seeks to identify the source of each defect in order to prevent it entering the final product. An examples would be Ishikawa (Cause and Effect or Fishbone) Diagrams, first used in 1960's in Japanese Shipbuilding yards, they were used to find the root cause of a problem which has an undesired effect, identify the main likely areas of cause, then break these down to further levels and then identify the most likely and solutions to those. Effort can be placed on the 80% of failures normally arising from the 20% of possible causes (Pareto Analysis - used to differentiate between the trivial many and vital few factors). Historically Quality Control was the final process on the production run where products were tested and if they passed they were shipped to Customers, and if they failed they were either re-worked or thrown in the bin. Economics meant that something better had to be done to avoid waste and to improve productivity/reputation/reduce costs. This is when Quality Management moved from the end of the production line back through the organisation, to the TQM way of thinking.
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Which term is used to describe the offering of equal or better quality products or services at a lesser price than your competitors?
Predatory pricing is what you call a pricing strategy where you offer the same products and services for a lesser price than your competitors.
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Competition in a population usually serves to encourage better and cheaper products and services. Companies and individuals strive to be the best, and hence the quality of skills and products on offer tend to increase.
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You'd be surprised at how many companies use call center outsourcing these days. It's not used to better the quality of the calls, its actually significantly cheaper to outsource than pay regular pay to people on the home front.
Why is competition a basic premise of the free-enterprise system?
having more than one business competing for the same consumers will cause the products and/or services to be provided at a better quality and a lower cost than if there were no competitors.
What is Legal Process Outsourcing?
Legal outsourcing refers to the practice of a law firm or corporation obtaining legal support services from an outside law firm or a legal support services company. Many companies offer these kind of services.
How does apple attempt to exceed customer's expectations considering the quality of their product or services?
Microsoft is better
How reflective practice contributes to improving the quality of services?
reflective practice contributes to improving the quality of service provision. "giving better care"...
