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Running head: OUTSOURCING LOGISTICS SERVICES
Outsourcing Logistics Services
Institutional Affiliation:
Date:

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OUTSOURCING
Outsourcing firms refer to companies that seek the services of other firms, otherwise
performed by their employees or departments, to focus on their main services or their reason for
being. The other companies whose services these firms seek are normally specialists in a
particular field or they may offer a wide range of services. There is a definition of these
companies as third-party providers (Kerr, 2019). Third-party providers use their employees and
resources in the delivery of services. Outsourcing companies get the benefit of more time to
conduct their main activities. They may also seek outside services to reduce production costs and
avoid the complications arising from performing many unrelated tasks.
The company chosen in this paper is Hewlett-Packard Incorporated (HP). This is an
American company that deals with the development and sales of computers and associated parts.
It is a leader in this field, providing both customers and businesses with high-quality products.
The company outsources a lot of its services while performing others in the United States. There
is an outsource of a high percentage of HP laptop computers’ manufacture (Grant, 2016).
The first reason HP outsources logistics services from other firms is flexibility. HP is a
market leader but competition from other firms and demand by customers pushes it to produce
high-quality products. Flexibility ensures the company runs efficiently. Outsourcing means there
is a faster production of the company’s main products. With a worldwide service base, HP needs
to work better to provide the products to other parts of the world while maintaining high
standards of quality.
The second reason HP outsources other companies' logistics services is to decrease
operation costs. While the main work is the development and sale of computers, other activities
would otherwise inconvenience the company. HP needs to export specific computers to other
countries. There is a need for a logistics company for this purpose. To satisfy customer demands,

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1 Running head: OUTSOURCING LOGISTICS SERVICES Outsourcing Logistics Services Institutional Affiliation: Date: 2 OUTSOURCING Outsourcing firms refer to companies that seek the services of other firms, otherwise performed by their employees or departments, to focus on their main services or their reason for being. The other companies whose services these firms seek are normally specialists in a particular field or they may offer a wide range of services. There is a definition of these companies as third-party providers (Kerr, 2019). Third-party providers use their employees and resources in the delivery of services. Outsourcing companies get the benefit of more time to conduct their main activities. They may also seek outside services to reduce production costs and avoid the complications arising from performing many unrelated tasks. The company chosen in this paper is Hewlett-Packard Incorporated (HP). This is an American company that deals with the development and sales of computers and associated parts. It is a leader in this field, providing both customers and businesses with high-quality products. The company outsources a lot of its services while performing others in the United States. There is an outsource of a high percentage of HP laptop computers’ manufacture (Grant, 2016). The first reason HP outsources logistics services from other firms is flexibility. HP is a market leader but competition from other firms and demand by customers pushes it to produce high-qu ...
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