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Briefly state the difference between Reengineering and Outsourcing activities in an organization. What is the difference in the main focus of each of those types of activities.
Expert Answer
Outsourcing is the process of contracting an existing business process which an organization previously performed internally to an independent organization , where the process is purchased as a service .
Reengineering is a multi disciplinary approach to make fundamental changes in how functions , activities , operations , and procedures are performed within a business . The purpose of such change is to improve earnings , productivity , and performance .
The focus of Reengineering is to continually improve business procedures whereas the focus of outsourcing is to reduce costs , lower risk , simplify and streamline functions , concentrate on core activities and competencies .
