An Example of outsourcing
For example, UK’s second largest retailer company NEXT, which deals in the shoes, clothes, shoes accessories, women fashion garments and home appliances. NEXT Retailer Company’s core business activities sectors are retailing not human resource, supply chain or auditing. For this firm made collaborations with many supply chain firms to carry out the products from one place to another. Also the firm hired another auditing company to take care of the financial details or transactions details happening in the firm.
By doing this, firm’s extra expenditure reduced by 10 percent and revenue increased by 15 percent. Firm also has opened new business in overseas countries (more than 49 countries) to expand its business activities and brand among the customers. For all the activities firm outsourced other firms.Increasingly, value is created across a connected network of partners, suppliers, customers, regulators and stakeholders, and success depends on collaboration amongst them. Thus it can be concluded that the outsourcing is the important factor in the growth of the businesses.