Outsourcing - Joint venture, Nearshore, back source and switch vendor Essay

Outsourcing - Joint venture, Nearshore, back source and switch vendor - Essay Example In fact, Whitten and Leidner point out that outsourcing can determine the â€Å"product quality, service quality, relationship quality and the switching costs† of a company’s products (2006). As such, outsourcing is generally an important strategy that can determine the success of an organization. Essentially, due to the development or organizational skills and technological developments, the competition among organizations has increased significantly. To avoid losses, many companies have opted to enter in to contracts and partnerships through the act of outsourcing. Generally, to enter these contracts, there are various costs that each organization has to cater for. These costs generally arise due to the payments made in respect to offshore government policies, agreements and negotiations as well as legal aspect matters among others. Notably important, in many instances, the costs of the partnership contract will be lower in huge and established corporations such as GlobShop, and higher in smaller organizations. Generally speaking, established organizations such as GlobShop are usually offered better investment programs and incentives as compared to the less established ones. Equally important, the monitoring and evaluation of performance in any organization helps in the acknowledgement of ambiguities that may lead to failure of the outsourcing. To ensure that an outsourcing venture is successful, organizations should consistently conduct meetings to discuss and review the set goals and targets. These meetings will also ensure that the organizations keep a consistent work towards attaining specific objectives thus enabling employees and managers to consistently keep track of their performance. Furthermore, joint venture outsourcing enables the organizations under partnership to increase returns and reduce costs significantly. However, lack of