Business Cost Production United Technology

Question: Describe about the Business Cost Production for United Technology. Answer: Outsourcing is a major tool which the organization uses to decrease cost of production. It transfers work to some outside suppliers. Outsourcing is a human capital strategy as well as effective cost saving strategy which affects the working capital in the organization. CIO of United Technology must have to measure the working effective strategy of outsourcing. He makes leverage of its internal innovation capabilities in the company by an effective personal and Information Technology links (Gobble 2013). Outsourcing is one of the competitive edges between one company (United Technology) and another because it affects the working performance of both companies accordingly. The outsourcing shows a fruitful impact which creates positive result of the company. Outsourcing helps the business to reduce cost consistently and it maintain time saving in the company which shows positive effect of the company. United Technology maintains the supply chain strategy in the company (Wiengarten and Fynes 2013). In order to make a successful outsourcing process in the company it needs to have a clear vision statement as well as have to understand the risk activity in the company. The company has to increase the margin of profit and must have the ability to control any unnecessary data in the company. If the company uses an effective model of data, it may show the success of the company (Pagell 2013). References Gobble, M.M., 2013. Outsourcing Innovation. Research-Technology Management, 56(4), pp.64-67. Wiengarten, F., Pagell, M. and Fynes, B., 2013. The importance of contextual factors in the success of outsourcing contracts in the supply chain environment: the role of risk and complementary practices. Supply Chain Management: An International Journal, 18(6), pp.630-643.