Strengths And Weaknesses Of Outsourcing

Many companies outsource to limit costs; however, decreased costs often result in decreased quality of performance by the outsourced provider. The human resources department is responsible for the day-to-day operation of the company and any poor performance from the outsourced provider causes an overall negative impact on the company as a whole.

“Outsourcing refers to the practice of contracting workers outside of a company or business for work duties or services previously performed by company employees or “in-house”. This practice is also often referred to as offshoring due to the increasingly prevalent use of “non-U.S.” service providers for these outsourced duties. However, strictly speaking, outsourcing can and does refer to the use of contracted labor provided by individuals outside of an organization, but still within the U.S.; whereas when these same services are provided outside the U.S., it is both outsourcing and offshoring.”

Due to the price of goods and cheap labor costs. Owing to the fact that if the cost of labor is high, the product has to be high which may cause the business to shut down. Outsourcing is a mischievous practice for the job market. While some good benefits can come from it, the ethical, legal, and business issues for the company's, employees, customers, and other external stakeholders outweighs them. For businesses that are small or big, there are both pros and cons to outsourcing HR functions.

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.

Outsourcing has become a very common part of business around the world. Outsourcing is when a corporation

Over the last decade, outsourcing has become a popular political debate topic in the United States. Outsourcing, typically used by firms as a way to lower costs, is the process of assigning work to an outside agency. Despite statements that outsourcing saves a significant amount of money for U.S. companies, not only does outsourcing have consequences both on the U.S. as well as on the other countries involved, but also more recent studies show that the amount of money saved for companies has decreased significantly.

One of the primary reasons for developing a more centralized Human Resource function is to make sure that high quality, consistency, and efficiency are of the norm across all areas. We work to prevent barriers so that we are able to meet the needs of our employees, while also achieving our Human Resource and organizational goals. Along with this, we successfully overcome new issues and carry out innovative employment

economy. Outsourcing leads to the fragmentation and disintegration of the supply chain, inviting new competitors into the industry, and undermining pricing power and profitability. For instance, is feasible only if it can be separated from other supply chain activities: product development, branding, marketing, distribution, and after sales services. Consequently, the more and more activities outsourced, the supply chain turns from a single integrated process performed within the boundaries of traditional corporations to a fragmented process, performed across several independent subcontractors. Another disadvantage, outsourcing’s unintended consequences extent to company relations with another partner—valued customers. Customers may feel betrayed in each and every activity is outsourced. If I hire Home Depot to make certain improvements in my house because they have reputation to reliable services, I would feel betrayed if I get services from a strangers hired by Home Depot. And I will feel even more betrayed if I end up discussing my medical or financial records with overseas strangers. What seems to be trendy and virtually in business strategy is not always a good

Human resources is considered key within the business, job roles consisting of recruiting employees so that the business can function and operative payments and other employee procedures. Therefor without these imperative duties businesses would have difficulties creating a respectable operational environment for the employees. In addition human resources is key for businesses to acquire results so that the company is always moving forward within different markets “human resources is accountable for a number of key results areas and management competencies” (John H. McConnell, 2011)

Outsourcing is the process of hiring functional experts to handle business units that are outside the main activity of the business of the company. Organizations use outsourcing every day to improve the products and services they provide customers.

The origins of many outsourcing endeavors begin as part of a strategic planning session during a period of lean years for a company or anticipation of a prolonged impending down-cycle. This is a time-period when the organization does not have a viable competitive product to offer in the market or the

Companies are benefiting from outsourcing because it allows them to offer more time with "live" operators ("Call Center Q & A", 2004, p. 32). Customers are seeing increased hours available for help because of the

Outsourcing is the contracting out of an internal business process to a third party organization. The term "outsourcing" became popular in the United States near the turn of the 21st century.(6) Outsourcing is big business today even for small businesses. Like every business decision we are faced with the advantages as well as the disadvantages of relocating part or all of a business. Outsourcing is one of the fastest growing trends in business as large-scale organizations have latched onto outsourcing due to the almost immediate savings and quality improvement. (1)

Before addressing the factors that are involved in this issue lets discuss some of the background information surrounding this issue. First what is outsourcing, “outsourcing is the practice of hiring an outside firm or individual to perform contracted work as an alternative to paying employees to do it” (Kokemuller, 2007). Companies use outsourcing based on expertise and cost-of-labor advantages. The subject of outsourcing in its self can often time be a much

According to a research, many companies feel that the cons outweigh the pros and that this type of business practice should not be considered anymore. It also can give the persona that a company is trying to cut corners and costs, which in turn, can look cheap. It can take away from the essence of the feel of a company. People want the special touch and do not want to be another face in the crowd. Outsourcing adds more distance between the guest and the