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An evaluation of outsourcing networks dynamics amongst partner firms Essay Example

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An evaluation of outsourcing networks dynamics amongst partner firms

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This means that companies or business organizations save up to 50% to 60% considering the existence of telecommunications, infrastructure, telecommunication and other project management costs. In addition, China has the most experienced and educated workforce. According to Chang and Xu (2008), China has over 200,000 graduates per year and over 800,000 IT professionals.On the other hand, China has the most relaxed legislation that attracts establishment of new businesses in the country. Sometimes back companies could establish businesses as joint ventures but currently the legislation allow even those who assemble the products in China to register as Wholly Foreign Owned Enterprises (WFOE). This is advantageous to the organizations since they are independent of the local partners and have complete management control, easier strategic alignment, and better protection of their valuable Intellectual property. Specifically, China has adopted laws and legislations that conform to the WTO’s Agreement that eases the concern of IP protection while outsourcing to China.In summary, with the increasing cost of doing business in the current competitive business environment, outsourcing of services and activities has remained a strategic disposition of many companies. With the availability of infrastructure, cheap labor, and many services in China, most multinationals have moved to outsource to the country. More importantly, China as well, serves as a wider marketplace for the products and services of the outsourcing companies.Partner selection in network outsourcing is a critical issue in building successful international joint ventures. Ideally, foreign firms or multinationals commonly select local partners with unique network structural advantages within the local alliance network. The centrality and brokerage are some of the key factors considered in determining the network positions of the partner. According to Figueiredo and Brito (2011), there are various partner companies in the Chinese marketplace. Microsoft is one of the companies that have a meaningful engineering and IT offshoring operations in China.Having strongly operated in the United States, Microsoft followed other Multinationals in building strategic alliances outsourcing in China. According to Borgatti et al. (2002), Microsoft Corporation is one of the companies that has benefited from the strategic outsourcing in China. Bjerregaard and Lauring (2012)

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preview essay on An evaluation of outsourcing networks dynamics amongst partner firms
  • Pages: 8 (2000 words)
  • Document Type: Essay
  • Subject: Marketing
  • Level: Undergraduate
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