Formal report writing Essay Example | Topics and Well Written Essays - 1250 words

Formal report writing - Essay Example within the firm to identify the core activities which are to be carried out by the senior staff, while the secondary functions are assigned another organization that may provide such functions to the company at affordable. Interstate, Inc is a New York based company, which specializes in providing domestic insurance for private individuals and corporations. It is considering moving all or part of its 150 person call centre to an oversee location in order to reduce its operating cost. The call centre currently handles calls of operating agents and enquiries from members of the public from USA. Management groups are researching about different countries in order to evaluate their potential to host a pilot project which should be operational within six months. If successful the centre will take over the full accountability for all call centre operations within 12 months. The management team will be meeting later to present their recommendations. Outsourcing is a management practice of taking a function of an organization to be managed by another organization on behalf of the company. InterState Inc, may hand over the secondary functions that can be handled by other specialized organizations on its behalf so that the core staff of InterState may concentrate on the most important functions (Lacity & Joseph, 12). The outsourced services are offered within the country or state and employees of the company whose services are outsourced performs the function and are paid for the services rendered. Through outsourcing InterState might be able to avoid many costs like payment of retirement benefits to employees, payments to employees who are on leave, or when the employees are less productive. Outsourcing has therefore become cheaper in the end because the company avoids certain costs (Haugen, Susan & Kacy, 24). Off shoring on the other hand is a business management practice in which a company like InterState may take moves its activities to another location in another