OUTSOURCING

OF

Outsourcing

Outsourcing: moving some of the firms internal activities and decisions to outside providers

Firm

Question: When should the firm outsource activities?

Supplier

Outsourcing

A firm may outsource some of its activities…

… or the whole of it!

• The world’s biggest retailer, plans to increase outsourcing of software development and back-office projects to India and is currently in the process of evaluating fresh contracts for vendors from the country

WALMART OUTSOURCING

WALMART OUTSOURCING

• Walmart, the world's largest retailer, has driven down wages in its retail supply chain by outsourcing jobs in American warehouses

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