State the benefits of e-business

State the benefits of e-business.
Explain the meaning of e-business. State its four benefits for the modern business.
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.

E-business, also known as electronic business, is the conduct of business on the internet. Its scope is not only confined with buying and selling of products but also servicing customers and collaborating with business partners.Benefits of e-business :

  1. Ease of formation and lower investment requirements : Unlike a host of procedural requirements for setting up an industry, e-business is relatively easy to start. The benefits of internet technology accrue to big or small business alike. In fact, internet is responsible for the popularity of the phrase ‘networked individuals and firms are more efficient than networked individuals’.
  2. Convenience: Internet offers the convenience of 24 hours, 7 days a week, 365 days a year business that allows shopping well after midnight.
  3. Speed : Internet has high speed. This benefit becomes all the more attractive in the case of information regarding intensive products.
  4. Movement towards a paperless society : Dependence on paper work has been considerably reduced through internet. Many companies and even the government departments and regulatory authorities are going in this direction.
  5. Global reach/access : Internet has global reach throughout the world.
    Factors responsible for the growing of importance of outsourcing:
  6. Confidentiality : Outsourcing depends on sharing a lot of vital information and knowledge. If the outsourcing partner does not preserve the confidentiality and say,/or example, passes it on the competitors, it can harm the interest of the party that outsources its processes.
  7. Sweat shopping : As the firms that outsource seek to lower their costs, they try to get maximum benefit from the low-cost manpower of the host countries.