Q.1:- Why are e-business and outsourcing referred to as the emerging modes of business? Discuss the factors responsible for the growing importance of these trends.
During the last decade or so the way of doing business has undergone fundamental changes. The manner of conducting business is referred to as the ‘mode of business’, e-business and outsourcing are referred to as ’emerging modes of business’ as these have brought about new changes in the way or manner in which business is conducted and it is believed that these trends are likely to continue. e-business may be defined as the conduct of industry, trade and commerce using the computer networks, e- business covers a firm’s interactions with its customers and suppliers over the internet and also other electronically conducted business functions such as production, inventory management, product development, accounting and finance and human resource management. Outsourcing represents a new mode of business as it is a departure from the traditional thinking of self sufficiency in business. It refers to a long-term contracting out of business activities to captive or third party specialists with a view to benefitting from their experience, expertise, efficiency and, even investment. Generally the non-core business activities are outsourced but of late even some of the core activities have started being outsourced. Outsourcing comprises four key segments: contract manufacturing, contract research, contract sales and informatics. The various factors responsible for the growing importance of these trends are
(i) Business managers and thinkers keep evolving newer and better ways of doing things in an effort to improve the business processes.
(ii) Business firms have to strengthen their capabilities of creating utilities and delivering value to successfully meet the competitive pressures.
(iii) Consumers have become far more demanding than ever in terms of higher quality, lower prices, speedier deliveries and better customer care.
(iv) Business as an activity has to keep evolving by adopting new trends in order to benefit from emerging technologies.