Effects of Outsourcing

1106 Words5 Pages
What is outsourcing? We have all heard the term thrown around but what does it really mean? Outsourcing is defined as contracting, sub-contracting, or 'externalizing' non-core activities to free up cash, personnel, time, and facilities for activities where the firm holds competitive advantage(BD,09).Outsourcing happens when company’s choose to purchases their needed products and or services from an outside supplier ( mainly other countries), rather than doing the same work within their own facilities. Why companies outsource. The main reason companies outsource is because it saves them money. Many different types of jobs are outsourced, IT, telecommunications, auto manufacturers, physicians and so on. Outsourcing by General Motors to…show more content…
Everyone in this America knew that not only had this particular airline close, but so had three others in a matter of a couple of weeks. But when I called my credit card company the man on the other end of the phone had no idea of what I was talking about. He even tried to argue with me about the situation. I then realized that this person wasn’t in America and when I asked him where he was located he quickly told me that I needed to write a letter and send it to the address on the back of the card and disconnected the call. I was upset about my travel plans being canceled but I was even more upset that I had to deal with all of that mess. After all of that I cancelled the credit card and when they asked why I explained to them that I didn’t agree with their employment decisions. I realize that me cancelling my credit card isn’t going to change the way that particular business is done, but I felt better about it. Outsourcing causes consumer frustration and disappointment. It is shameful for American companies to turn their backs on the American worker just to save a little money. How can outsourcing be stopped? Many people insist that there are no clear cut ways to stop the issue of outsourcing, while some people offer up ideas on how company’s could still keep the majority of their work in America while still outsourcing. Outsourcing has become the wise thing to do in business now days and with these economic times, it is only going to
Open Document