Instructions
Use your favorite search engine to locate an article about a company that has decided to outsource a part of its business operations. If you currently work for an organization that outsources or is thinking about outsourcing, you can use that instead. Respond to the following four (4) prompts based on your knowledge from this unit’s material and the article you found.
- State the name of the company you chose and your information source (link, employer, and so on). Describe the type of company it is, and explain which area it is planning to outsource or is already outsourcing.
- Why did the company consider outsourcing in the first place? Explain in terms of the company’s sustainable income and the quality of its earnings.
- Identify the revenues and costs that would be impacted by this outsourcing decision using ratio analysis. Use your best estimate on these revenue/cost values since the actual amounts are most likely not known to the public.
- Identify the factors, based on horizonal analysis and vertical analysis, that could impact the company’s decision to outsource this business operation. Make your own assumptions and estimates regarding these factors.