Essay on Outsourcing Jobs To Foreign Countries

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Outsourcing Jobs to Foreign Countries

Due to the lack of employment in foreign countries, companies that outsource work overseas are not only beneficial to themselves but also to the service providers being employed. The initial benefit that catches the public’s eye from outsourcing is a cost reduction on the company’s part. But that is not the only benefit from outsourcing or even the key benefit that causes companies to outsource, on the other hand, outsourcing has its disadvantages as well. Outsourcing, like every developing idea being implemented into our economy, has its pitfalls and drawbacks such as staff cuts and information leaks, there are also cases of breach of contract. Despite all the advantages and disadvantages of
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Outsourcing does reduce costs but in some cases cost reduction is not the issue that is to be resolved by outsourcing. For some companies efficiency is the driving force behind outsourcing. These companies choose to outsource because they believe an external entity could provide a service or do a certain job better than they could. For instance, Dow Chemical Co. has been outsourcing the digitization of sensitive Research and Development documents to Xerox Global Services, a division of Xerox Corp. (Katz, J., 2006). That brings up a troubling question about outsourcing, Should we worry about sensitive information being handled overseas? Among the several well scrutinized disadvantages of offshore outsourcing, sensitive information leaks are an issue. With the progression of offshore outsourcing, companies have gone from outsourcing non-core processes such as information technology and customer service to implementing the outsourcing of highly crucial operations including research and development (R&D) and engineering which causes some amount of economic risk on the company’s part. Ross Graba, vice president of business development for the Company Cross USA, said, “Outsourcing business halfway around the world can put trade secrets at risk.
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