Advantages and Disadvantages of Outsourcing

Every day millions of people wake up, get dressed and head out for a long day of work. Many of these people may work at a local McDonald’s, Wal-Mart, Dillard’s, or gas station. Some people choose to work at home on a computer blogging, selling items on the internet and even making entertaining videos. Present day society is quite different than society years ago, before and during the Industrial Revolution. Today the people of the world have more opportunities for advancements than before. The world has evolved significantly over time, and

Because of outsourcing jobs to overseas many American workers lost their jobs or compelled to work for much less compensation. This trend leads to the shrinkage of middle class income bracket and the reduction of the family’s standard of living. Besides, due to the elusive future employment status and the financial problems, many people have to live hand to mouth, and many more have to cut their expenditures in order to survive this dreadful and unpleasant situation. More importantly, the reduction in spending money and the deterioration of consumer confidence can hurt the economy severely and exacerbate the situation.

Payroll outsourcing can save companies time and money. It allows the business to not waste man hours handling a function that doesn't bring in any revenue. The cost of payroll processing is greatly reduced by using a payroll service company. It usually costs more to pay an employee to handle the payroll than it would cost to outsource to a professional company.

Numerous conspicuous financial experts, point the finger at outsourcing for various monetary issues, including declining compensation, high rates of unemployment, a contracting white collar class and a stagnant economy. This has been an issue for a long time and be that as it may, is outsourcing awful for the economy? Outsourcing is a prominent component especially due to America being a market economy, where it does not provide for everyone's basic needs; outsourcing for the economy itself and not the consumer has a positive impact. In other words overtime can be positive for the economy due to paying lower wages to outsiders, however it can demolish the jobs of the American people.

Initially, the purpose for offshoring was due to producers wanting to lower fixed costs and also seeking lower waged workers. By moving job duties abroad, producers were also able to avoid unionized workers (Gupta & Sao, 2009). In recent years, offshoring has also become popular in higher waged jobs such as software development. Outsourcing is very similar to offshoring, where a firm purchases inputs or services from another firm, but the firm is also located in the United States (Harrison & McMillan, 2006). A staffing agency is an example of outsourcing. A company is assigned by a client, and employees of the staffing company work directly with the employees of the client (Houseman, 2007).

Today, as businesses hire white-collar workers abroad, similar opportunities will abound for those ready to change and grow. As in earlier eras, the capital accumulation made possible by the increased efficiency and specialization at American companies will fuel demand for employees with new skills, such as managers able to integrate a company's activities across countries and cultures.

Work is a part of humanity. It helps fulfill our needs such as food, housing, and health. Work has been changed throw history. Humans work in different disciplines such as agriculture, medical and engineering, to provide a specialized service to their community. In the past, people were specialized in one . The people in this community need to go to a specialized person. For instance, the alchemist makes his or her own medicine; however, now companies provide medicine to all over the world. As the type of work change, new rules and systems were made to accommodate the type of work, environment and workforce. For example, in the past, most of the children work to help their families; however, they cannot get an education or enjoy their life

There are various benefits for CIO outsourcing. While you are operating a business, it is a necessity for you to make wise decisions that will save you stress and money. If you lack the knowledge to manage your technology you can take the easy route by relying on the proficiency of a professional to provide you with the right solution. Using a seasoned professional increases the efficiency of decision making and will help you to save time and cost. With CIO outsourcing, you will have a better time focusing on running your business rather than being involved with the stress of trying to solve technological issues. This is a solution that gives a business access to a dependable team of professionals with a depth of experience.

Outsourcing overseas is a major disadvantage to the American economy. Contrary to popular belief, companies argue that low- cost labor will in turn save them money and raise competitiveness, which will result in less costly products. When taken into consideration outsourcing eliminates domestic jobs. When a firm outsources, the jobs outsourced are, by definition, removed from the country. These jobs are then sent overseas, where labor is paid far less than in the United States:

The modern society is work driven that people need to work hard to realize the general community development goals and personal goals. Thus, work has become an integral part of the day to day living of an average American. One needs to always have something to do in mind and strive to grow on the job to experience greater financial success and skill development. Whether or not a person has multiple work opportunities or succeeds in their work life is influenced by multiple factors, some of which are within the control of the individual in question. The United States of America has a unique work culture that is predominantly shaped by the way that the society is stratified and the assertions that people build towards their work life. However, one thing that remains certain is the way that culture affects the direction that a person takes in employment, on top of the individual ability to overcome social obstacles in order to secure employment that is favorable to an individual in terms of skill and preference. Suffice to say, the milestones attained in one’s work life is contingent to the institutional and cultural support availed by their external environment, personal psychological strength and belief also plays a part.

In analyzing the second reason listed for why outsourcing is used; ‘inability to attract the highest caliber of employees to job functions that may be peripheral to the organization’s core discipline’, companies employ a different kind of outsourcing tactic. This reason leads to offshore outsourcing solutions. If a company cannot attract high caliber domestic employees to job functions secondary to their main function then they seek help where labor may be less expensive and more efficient.

Globalization is the integration of markets through the cooperation of internalization, federal, and state governments with corporate companies to provide products cheaper. Subsequently, outsourcing is an essential part of this globalization. So really, what is outsourcing? I have interviewed IKEA’s U.S. Deputy Retail Country Manager Rob Olson of his understanding about Outsourcing—Swedish goods. Olson stated that IKEA’s outsourcing utilizes the unique talents of different countries and their labor markets to increase trade which helps better allocate resources in their own countries while getting goods cheaper from others.

To understand whether or not outsourcing is beneficial, it is important to have a complete understanding of what it is. Simply stated, outsourcing is a practice employed by some companies in order to reduce cost by transferring work to third-party suppliers rather than keeping the work within the company. The most widely known example of a company which outsources jobs is Apple. Rather than keeping the manufacturing of its products in the United States, Apple chooses to outsource jobs to a third-party, major manufacturer in China called Foxconn, famous for providing the world with iPhones, iPads, and many other Apple products.

As the variation of workers’ income levels, status and values about business and the character of the U.S. government, significant social impacts are generated from these changes (Earl, as cited in Knapp, Sharma & King, 2007). First social impact involves changing career models. According to Sullivan (as cited in Terjesen, 2006), conventionally, careers have followed an upward, linear series through one or two firms or consist stable employment in one progression. Terjesen (2006) claims that globalization and technology have changed the essence of careers and of the psychological employment agreement which was initially regarded as exchange of employee loyalty for job security, and this contract has moreover been damaged by the pressure of outsourcing, particularly when employees are required to train individuals from overseas who are possibly take their jobs. A study of technology laborers found that 20% of them had trained an individual from overseas (Terjesen, 2006). Therefore, for the purpose of maintaining employability in the new career model, the U.S. workers are individually required to exploit portable, specific knowledge, skills and core competencies. Furthermore, the offshoring of jobs in the U.S. has generated the backlash, which can be defined as a strong negative reaction by a large number of people, such as one reaction to something that has recently changed in society (Oxford Learners’ Dictionaries, 2015). According to Terjesen (2006), the considerations

also can sustain the organizational goals with gaining a highly skilful employees. Lastly, in other to produce a skilful employee from fresh graduate, Proton implements an internship program for graduate trainees, in order to maintain the best employees in the future.