Quoting from [c42plusgolf]:


what things would this service do Out sourcing service


Thankyou

                                                    Outsource Service

Jobs or services which the company finds not economical to do, and cheaper if done by a external contract company.

For example:

A Singapore based company who makes additives for fuel oil and lubricating oil was doing the packing, warehousing and shipping.

The scale of the logistic part is not big enough to have a group of people doing this function, and the many new players in the logistic service provider market drives the price down. If this part is to be handled by their own staff, it would cost them about $2 million a year. Many logistics companies have got their infrastructure and facilities ready and are doing them for other small businesses, they will do it for less than $1 million a year............  this means a saving of $1 million a year.

Street smart   

Quoting from [Madhur_Agarwal]:


Replying to [Street Smart]:


Can you diffrenciate between sourcing and oursourcing

 

Dear Agarwal

Sourcing is searching for a source of supply, and outsourcing is to contract out a function of the company.

Small companies find it cheaper to outsource functions like accounting for example, the annual report of Profit and Loss to external auditors and accounting firms, who do it for a number of companies and will charge only one time fees of say $2000.00. Where if the company were to hire a accountant, it will cost them $2000 a month.

Sourcing is different, for example if the company is to look for suppliers of stationary for their own use, the Purchaser will source for suppliers of the stationary through traditional channels, like the Yellow Pages or Industrial Directories, and also the Internet.

Best regards,

Street Smart