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Multiple Outsourcing Partnership

General Electric Inc (GE) is one of the major companies that have established its manufacturing and services through out the world. GE has succeeded in establishing itself over 100 countries worldwide. It is one of the companies that has adopted the outsourcing policy. GE has establishments in the three countries considered to attract foreign direct investors most. These are Mexico, China and India. GE is argued to have opened the way for other international investors to invest in China. It is argued to be the pioneer of foreign direct investors in the country (Hira, 2005, p. 7).

It can be viewed that outsourcing has had sever...

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...al positive impacts on GE. In fact it can be said that outsourcing has been the main contributing factor to the rapid growth of this company. The sole objective of any business is to reduce the cost of production and maximize on profits (Bordeianu, 1998, p. 1). Outsourcing has been the best strategy towards achieving these objectives. Outsourcing has helped GE increase its profits as it is able to manufacture and produce its goods and services at a cheaper cost in a country outside the United States without compromising on the quality.

These goods are then brought to the US market and sold at a cheaper price. This increases the sales as the consumers buy more for the same amount of money they were using before. Increase in sales is directly related to increased profits (Economist Intelligence Unit (Great Britain). ,1982 p. 29). Outsourcing has also increased the market are for GE products. The trading blocks and the free market areas that are a direct result of outsourcing has enlarged the market for these products. This is because very many people have been linked by these trading blocks which expand the market.

The free trade also enables producers to sell their goods and services any where within the block without any sanctions or revenues. The large markets and the free trade has led to rapid development of GE as a company. Out sourcing has also enabled General Electric Inc Company to be diverse in their production. They have been able to provide different services and manufacture different goods for the market. This has been made possible by the growth in their profits which enable them to channel money in other projects (Greaver,1999, p. 3).

The fact that they have not specialized in production of a specific product makes it safe for the company as they can always rely on the other lines of products in case of any eventualities. This can be simplified as they have not put all their eggs in one basket. It can be concluded that outsourcing has helped the General Electric Inc Company to rapidly grow. Its impact has been very positive to the company (Philip et al. , 2007p. 25). The decision of General Electric Inc to have multiple outsourcing partnerships is very wise for the growth and security of the company.

Different countries have different conditions for foreign direct investors. Rules on investors are not the same. Some countries have conditions that will guarantee larger profits for the manufacturers than others. These conditions are in terms of tax advantage, wage advantage and good infrastructure. Different conditions on these aspects in different countries enable the investing companies to benefit differently. Some conditions which are comfortable for investors in one country may not be equally comfortable in another country hence need for multiple outsourcing partnerships.

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