Although outsourcing make a company pay extra costs on the materials it has some advantages. This is because outsourcing makes a company save on time that would be used in doing other businesses that will significantly profit the organization. Outsourcing with great management can help in increasing the profits in an organization. For example, Flexcon piston requires a qualified and trained management to oversee the outsourcing in the company. This is because the outsourcing activity in the company will help them acquire durable machines (McIvor, 89). The manufacturing of durable machines will result to selling long lasting products to the clients that will require minimal servicing in a long time. This means that the work done by the machines will have recovered the extra cost generated by outsourcing.
The act of outsourcing will result into the company temporary employees. This means the Flexcon pistons will save a considerable amount of wages. This is because permanent employee wage can significantly decrease the company’s profits (McIvor, 122). Another factor that makes outsourcing a good method of operating business is that the company will concentrate on networking and growth business strategies that will help one defeat their rivals in the business. This means that the employees will spend most of their time meeting with clients and enhancing business relations that will result to a significant increase of the profits. Outsourcing also helps the business to have staffing flexibility. This means that Flexcon pistons will hire employees at the time when they are needed and release them when not in need. This will help the company substantially save on the salaries and wages. I would highly recommend that Flexcon pistons to adapt the outsourcing mode of business operation.
McIvor, Ronan. The Outsourcing Process: Strategies for Evaluation and Management. Cambridge: Cambridge University Press, 2005. Internet resource.