Outsourcing And The Problems Of Labor Standards

2125 Words Jul 30th, 2014 9 Pages
Introduction

Outsourcing has existed since many years; with the development of technology it’s easier to do business, and communicate between countries in seconds. This process involves hiring a third party to perform certain activities with more efficiency.

Therefore, outsourcing is challenging for companies because they are several tasks involve in this process. For example: selecting the correct provider of outsourcing, what is the company’s goal, identifying the core and non-core business activities, defining the process that should be keep it in-house or the activities that are better to outsource, to a country that works based on the comparative advantage. Consequently the main propose of outsourcing is to lower costs, and this
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With the global telecommunications infrastructure now well-established and consistently reliable, BPO initiatives often include shifting work to international providers. (Click, Rick,2005).

There are several areas that a firm can decide to include in the outsourcing process as follow:

• Operation and business
• Finance and accounting
• Human Resources
• Sales and marketing
• Legal
• Logistics

This process nowadays has become a powerful strategy for many worldwide corporations because it increases the expertise, and it also offers a rapid development in technology i.e. telecommunications, Internet. Facilitating the company to do business.

According to Deloitte, which is the largest professional services network in the world, contributing accounting, tax, and human resources. They understand that their business process outsourcing (BPO) practice advised their clients to optimize time and empowered them to focus their resources in their BPO. Deloitte conducted a survey to 53 different enterprises with the main focus of: the reasons for a firm to make the decision of outsource, according to this study the most significant facts to consider outsourcing are:
• Lower cost
• Gaining experience from outsourcing
• Improving service
• Utilizing access to more technology

Figure 1: Important facts to consider outsourcing (Deloitte survey results)

The results on the survey reveal that one of the main goals to outsource is a

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