Advantages And Disadvantages Of Outsourcing

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By this contemporary time, outsourcing has become an inevitable trend in the global business and most of multinationals and entrepreneurs are attracted by its privileges. It has been contributing in global transformation of business as a new business strategy and jumped in international popularity since a decade. Although it is a broad phenomenon the objective of this essay is to describe the scope of outsourcing with its major advantages and disadvantages.
Outsourcing refers to a part of business operation or job function conducted by external vendor instead of mother company based on the principle of competitive or competitive advantages and division of labour. In other word, in most case company cannot manage its whole aspect of business function instantly at that time management allocates specific business task or responsibility to a specialist external service provider in exchange of a reasonable amount of money is called outsourcing. According to the Greaver " Outsourcing is the act of
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The renowned economist, Adam Smith, explained in his treatise The Wealth of Nations, "If a foreign country can supply us with a commodity cheaper than we ourselves can make it, it is better to buy it of them." In term of outsourcing business most of companies of developed countries like USA, UK, Germany, France, Japan are largely depending on relatively low wage countries such as India, China, Brazil, to name of few. In recent time, most of multinational company are emphasizing on outsourcing which trend will lead to turn into outsourcing industry in future. By considering this factor, it can be predicted that it is a potential sector for both developed and developing countries as it provides a win-win situation for both involving
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