BUS FPX 4016 Assessment 1 Global Market Variables

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Capella University

BUS-FPX4016 Global Business Relationships

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Date

Variables Associated with Outsourcing Legal Services

Outsourcing legal services has become increasingly popular among companies in recent times due to escalating fees and prices for legal services coupled with heightened demand (Outsourcing Insight, 2018). These services play an essential role in helping companies navigate competitive markets and foster growth (Outsourcing Insight, 2018). By strategically utilizing outsourcing, businesses can reduce costs and redirect resources to enhance their bottom line (Outsourcing Insight, 2018). This trend is primarily driven by competitive market dynamics and cost considerations, allowing companies to reallocate resources for reinvestment.

Legal Services and Cross-cultural Communication and Organizational Structure

Effective cross-cultural communication and compatible organizational structures are crucial for companies engaging in outsourcing endeavors (Warburton, 2021). Cultural awareness plays a significant role in the success of global outsourcing initiatives (Warburton, 2021). Managing cross-cultural interactions and aligning organizational structures with third-party entities are critical aspects of global outsourcing (Warburton, 2021). Differences in cultural norms across various geographic locations can significantly impact operational practices and productivity levels, underscoring the importance of thorough consideration when selecting outsourcing partners.

Business Processes or Services and Outsourcing

Companies often outsource functions such as telemarketing, customer support, and accounting to streamline operations and achieve cost savings (Eby, 2017). This strategic approach allows companies to focus on core activities, enhance operational efficiency, and expand their market presence locally and globally (Eby, 2017). While these services entail lower risks compared to outsourcing legal services, potential challenges include communication barriers, unforeseen costs, security concerns, and vendor reliability issues (Soucy, 2021). Serious risks associated with legal outsourcing include lack of indemnity coverage, conflicts of interest, confidentiality breaches, and compromised quality (Thomson Reuters, 2011).

Issues Business Managers Should Consider

Business managers should carefully evaluate several factors when contemplating outsourcing decisions, including cost, resource availability, technological capabilities, deadlines, supervision requirements, liabilities, contractual agreements, communication channels, and trustworthiness (Outsourcing Insight, 2018). While cost, deadlines, liabilities, and communication are often prioritized, managers should also consider the adequacy of available resources and technology, supervision requirements, and the reliability of the outsourcing partner after comprehensive analysis.

References

Eby, K. (2017, January 17). Essential Guide to Business Process Outsourcing. Smartsheet. Retrieved August 31, 2022, from https://www.smartsheet.com/everything-you-need-knowabout-business-process-outsourcing

Outsourcing Insight. (2018, February 23). Why should you outsource legal work? Retrieved August 30, 2022, from https://www.outsourcinginsight.com/outsource-legal-services/

BUS FPX 4016 Assessment 1 Global Market Variables

Outsourcing Insight. (2018, March 14). 10 factors to consider for outsourcing decisions. Retrieved August 31, 2022, from https://www.outsourcinginsight.com/outsourcingdecision-factors/

Soucy, L. (2021, November 22). Top 10 risks of outsourcing (and how to manage them). Biz 3.0. Retrieved August 31, 2022, from https://biz30.timedoctor.com/risks-of-outsourcing/

Thomson Reuters. (2011, September 1). Legal process outsourcing: Opportunities and risks | practical law. Thomson Reuters Practical Law. Retrieved August 31, 2022, from https://uk.practicallaw.thomsonreuters.com/9-508-0134?contextData=(sc.Default)

Warburton, K. (2021, February 11). Global outsourcing key considerations – part 3. Global Business Culture. Retrieved August 30, 2022, from https://www.globalbusinessculture.com/outsourcing/key-considerations-3/

BUS FPX 4016 Assessment 1 Global Market Variables