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ID number:105655
 
Evaluation:
Published: 13.06.2002.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

Buyers must anticipate which vendors will be able to help or hurt them in the future.
The world's most revered chief executive Jack Welch has introduced a new rule. It is called the 70:70:70 rules. Apparently, it has also been e-mailed to GE employees across the world. Welch has decided that 70% of GE's work will be outsourced. Out of this, 70% will be done from offshore development centers. And out of this, about 70% will have to be done in a single outsource center! These boils down to the individual outsource center for the origination points in a company.
Outsourcing can be very beneficial to a company especially if the business manager takes a hard look at the core competencies. If the manager can revisit the areas of the company that aren't directly involved in those competencies, and consider whether out sourcing can enable the manager to spin off those tasks and let another company take over the management responsibilities for that work, and use modern communication technology to work closely with the people - now partners instead of employees are doing the work.

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