Answer to Question #180975 in Management for shaun

Question

Q.2.4 There are many rationales for outsourcing. Relate any five rationales to Dell’s operations.  

Answer 1

There many rationales why a company may need to outsource its operations. One of the main reasons Dell outsources is to reduce cost of operation. This saves the company's money. Another rationale for Dell to outsource is to improve its productivity and Efficiency. Dell finds it more profitable to outsource the manufacturing of Electronic components instead of producing in_house. Also, Dell outsourcing its operations saves the company from needing to hire personnel at higher pay taxes as outsourcing companies can provide same in_house services at a lower cost thus having lower wage requirements. Another rationale for Dell to outsource is to meet compliance requirements. Dell may opt to outsource the compliance team instead of adding stress to the existing workers. Also Dell outsources in order to specialize functions and services. It is more cost effective to outsource specialized functions and services.