Outsourcing Essay

1680 Words7 Pages
Outsourcing Outsourcing has become a very popular issue, and it has reached an all-time climax. Firms are starting to do this a lot more than than in the previous decade. What is outsourcing? Outsourcing is defined as “The procuring of services or products, such as the parts used in manufacturing a motor vehicle, from an outside supplier or manufacturer in order to cut costs.” And it has become a big issue in our country. There are thousands of articles and books written on it, and you can attend numerous classes and speeches on the subject. The use of outsourcing is quite simple really… Either pay an American worker $15 an hour, or pay someone in India to do the same job for $2 an hour. There are lots of other advantages and…show more content…
The size of a company matters when trying to save money and what tasks you decide to outsource (different jobs cost different wages), but generally speaking, a company saves big dollars for sending jobs overseas. And sometimes companies turn to outsourcing as a way to solve the wrong kinds of problems. If the problems are from bad management, outsourcing won’t help. This is something that needs to be resolved inside the company itself, and hiring other types of labor won’t help. A company sometimes sends jobs to other countries that they are not capable of within their budget or when it’s outside your particular area of expertise. Another advantage is that you don't have to become an expert in a particular area--you can depend on the outsourced company to be the expert. You can hire them to deal with 1 branch of your company, and you don’t have to worry about that area of your company (unless they turn out to be incompetent). Two major downsides to outsourcing is the risk of putting part of your company in somebody else’s hands. People that you may have never met in your whole life, and just talked to over-the-phone. If they fail, then obviously your company will feel the consequences. And instability is always bad for any company, hiring someone new in the same position every month can be disastrous. Such high unstability in the position may mean that people rarely stay long enough to become familiar with your company. In these cases, it’s unlikely
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