Outsourcing as a cost reduction approach: A case study

Cost reduction is an inevitable process for the businesses. Beside themany known cost reduction techniques and methods the commonly used areTarget Costing, Kaizen Costing, Value Analysis, Activity Based Costing and etc.The outstanding methods are closely related to each other. In other words, torealize the successful cost reduction purpose, at least two of these methods mustbe used together. In addition to all these methods there is a one that beside thecost reduction improves the core competencies of companies. It is called anoutsourcing. Outsourcing is a tactic and strategic approach that gives anopportunity to adapt the environmental changes in a short time where theglobalization and specialization are rising rapidly.