Outsourcing and Offshoring Initiatives Case Study Questions

Outsourcing and offshoring initiatives can help an organization fine-tune its business model to become more resilient and profitable. At the same time, these initiatives present challenges.

In today’s highly competitive, extremely variable, and dynamic environment, many firms are seeking solutions. Supplychainmanagementbecomesmore sophisticatedandthedifferencebetweenwhat firmswanttoachieveandwhattheycandoin-house continues to grow, firms begin to realize that doing the right thing becomes more interesting than doing everything.Accordingly, they are becoming better focused and more specialized by outsourcing and offshoring activities that are far from their core businesses. In many cases firms decide to outsource this function in whole or in part to agents or third-party logistics firms. 

Using this concept of offshoring and outsourcing answer the following questions by taking any Saudi Local company or any Multinational company.

Questions: Each Question Carrying 2 Marks.

Define Third party logistics firms? Discuss its working procedure? (400-500 Words) 

Explain the motivational factors for going internationally? (400-500 Words)

On what ground companies choose developing country’s location for offshoring? Use examples. (Mention the country and decisive factors). (400-500 Words)

Why do companies outsource? (Use example of any Saudi company along its objective and scope for outsource). (400-500 Words)

Assess the reasons for using third party logistics service in Saudi Arabia? Using examples, Explanation regarding their logistics performance and priorities.