Sample Thesis Paper
While the benefits of Outsourcing are doubtless, Outsourcing has been realized to be the cause of serious risk as well. The demand for better products from Outsourcing agents allows the Outsourcing agents to specialize in the products/services that they supply. In cases where one outsourcing agent is referred to for a variety of products/services for the same business, the agent, with time, acquires the expertise, knowledge and understanding of the business that can enable the outsourcing agent to carry out forward integration and expand into become competition for companies that were its former clients.
Specifically, in the current case pretext, a supplier of parts can choose to become a full fledged producer of helicopters by making contracts and/or partnerships with other outsourcing agents in order to acquire all the parts required to put together the helicopter. In such a case, the expanding supplier will already have the skilled labor and perhaps even the equipment and will only need to incur a fraction of the expenses that a company would otherwise have to incur if it entered the industry from scratch. Therefore, in order to ensure that the threat of new entrants remains stable enough to discourage outsourcing agents from engaging in forward integration, it is essential to maintain contractual ties with multiple outsourcing agents at the same time instead of concentrating on a handful of them.