Thesis: Assessment of Potential of Redirected Funds in Outsourcing

Sample Thesis Paper

While cost saving brought about as a result of the outsourcing process may have positive impacts which the organization will then be able to transfer to a more concentrated focus, the organization will also be able to bring about an increase in the remunerations and/or benefits of its human capital. This will not only allow the organization to acquire a better focus, but will also enable it to acquire assistance in other areas of the organization. For instance, there is no doubt that engagement in the outsourcing operation will allow the organization access to expanded funds for utilization (Zhu, Hsu, & Lillie, 2001).

The organization needs to assess whether or not it is in a state where it can adequately make use of the expanded funds or whether the stationary liquidity will take on the form of a liability. In the event that the company evaluating its odds for outsourcing chooses to invest its expanded funds, it will have to engage in an analysis of the investment opportunities in the market. The relevance of this factor lies in the reality that funds will be freed after the company in question has engaged in outsourcing and the utilization of this new source of savings can play a critical factor in ascertaining the degree to which the outsourcing is a success.

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