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 To the originator of this question, the answer was simple, SURVIVAL.
In the late 70’s Motorola began to understand the cost of poor quality when customers were returning products which had defects. Defects were causing products to fail, which led to inefficiency and reduced profits. Motorola admitted that their quality ‘stunk’ and in 1983 employed the methodology of Six Sigma. The result of this decision had a yield of $15 billion dollars to the corporation.
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| Reducing the costs of contractor management with the click of a mouse
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 How do you save $90,000 per annum off the cost of managing contract staff, without compromising work quality or productivity?
One of the Southern Hemisphere's largest local government entities faced a challenging mix of objectives: continuously reducing costs whilst improving productivity, adopting leading-edge, innovative work practices and maintaining their 'employer of choice' status across a large and culturally diverse workforce.
The organisation recognised that the best approach to meeting these objectives was to partner with a single provider with the same vision.
But how could a single provider streamline contractor ordering, invoicing and management, measurably reduce costs and improve productivity, and attract and retain the best fit employees for the organisations' objectives?
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| Why the companies are offshoring?
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 Over the years offshore outsourcing has increased at a rapid pace due to advancement in technology, better connectivity and access to low cost labour. By outsourcing back office business processes to less expensive nations like China, India, Philippines or Malaysia, companies can cut costs, concentrate on their core business, and ensure better customer satisfaction. A recent report suggests that US firms have saved billions through outsourcing to developing nations like the Philippines.
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