The Is A Human Resource, Information Technology, Or Even Accounting? Essay

Because many businesses in the US have more often began outsourcing different business products instead of doing them in-house, it is important to understand why outsourcing may be the best option. Although many tie outsourcing to foreign markets, outsourcing can include both foreign and domestic markets. By entering into a contractual agreement, outsourcing allows organizations to pay for services they need. This gives the option for a business to get professionals to perform services for them that the business may not have the staff for. Outsourcing provides a cost saving-strategy that is usually more affordable. Ultimately,

The U.S. economy has seen many hardships within the last decade. The economy has suffered from a recession that is still threatening to cripple some Americans and unemployment has been at an all time high. People have lost homes and jobs and many businesses have gone bankrupt simply trying to survive. However, in the midst of this economic crisis some companies have managed to survive. Many companies, approximately 36% of them, have found a way to avoid economic collapse by cutting costs (Job Outsourcing Statistics, 2014). One of the most popular cost reducing strategies of our time is called outsourcing.

Outsourcing has become an integral part of many organizations today. Outsourcing has its advantages and disadvantages that organizations will have to weigh to decide whether or not outsourcing is the best possible solution to their current problems and business operations. Outsourcing refers to the process of hiring external provider to operate on a business or organization function (Venture Outsource, 2012). In this case, two organizations or businesses enter a contract where there will be an exchange of services and payments. This paper will discuss the possible risks an organization may encounter in outsourcing in relation to the use of an external service

Outsourcing is a practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally. (Investopedia) Outsourcing jobs has become increasingly popular in the economic realm of the world since the mid-20th century and has since then become a more controversial topic. The United States economy has been under the microscope for the last 4 years due to the economic recession. In today’s global business competitive environment, companies must find innovative ways that adapt to new strategies to sustain revenue generation, while also remaining competitive. This paper gives the effects that I have found to be most pertinent to the ongoing debate over outsourcing jobs, and how it can affect the U.S economy.

Outsourcing has become a very controversial topic, particularly around the time of presidential elections. The working public has a very different view of outsourcing than the business owners, partly due to information asymmetry. In other words, the working public does not typically have all of the information regarding the impacts of outsourcing available to them as business owners do. Reversely, business owners are not able to see the impacts of outsourcing on the working public and therefore, do not consider those impacts when restructuring their companies. The interpretations of these impacts, however, determine whether they are costs or benefits to the person interpreting them.

When should you outsource? If you are losing focus on your core business because you are too busy handling operations or if you are facing a time, money or human resource crisis, outsourcing is a solution[2]. Outsourcing can also allow you to be the first one in your market to gain that important edge to put you over the top. However, the main reason for outsourcing is that a mission-critical project needs to be finished, but there is a lack of specialized personnel to finish the project. Outsourcing is not done only to save money, but because the specialization is necessary for certain products.

Utilitarianism is an ethical approach that in its simplest form promotes the greatest good for the greatest number, or seeks to maximise the benefits over the costs. It is consequential in its focus, concentrating on what is considered a good outcome of an action relative to the group’s notion of good and bad - the outcome determines the ethical appropriateness of an activity. Within this framework, a business should seek to maximise its profitability, market power or other benefit to the least detriment of others. Self-interest is dominant, with something being done for a personal or collective benefit, not because it is ‘the right

The problem of outsourcing is not new, but is still a keen business problem for today’s economy. Both manufacturing and services are able to be sent overseas. Our company is deciding whether or not to outsource, and if so what and how much we should outsource.

There are so many reasons for outsourcing which is the better service, improving organisational efficiency, access to new technology, reduced IT cost, & an ability to refocus in-house staff on higher-value work. The outsourcing option has two main types, first one is

However, the contracting of non-governmental workers allows agencies to adapt to the rapid changes in technology because many times contractors are certified and experienced knowledge workers and have the expertise to deploy the latest technical innovations (Chen and Soliman, 2002). For this reason the outsourcing of technical and complex tasks to contractors have become increasingly popular across both private and public organizations (Slaughter and Ang, 1996). Some of the emerging trends in outsourcing includes domestic verses offshore outsourcing. Domestic outsourcing is a perception of the local jobs in a country which is best for the local economy. It has rural outsourcing which makes rural parts carry out functions in a competitive basis rate as compared to other service providers from other countries. Offshore outsourcing is as a result of its spread to many countries and is brought forth by change in prices. Another trend is security issues whose major concern is the security questions on the sensitiveness of information that is accessed by outsiders of the firm. It has been a key concern and still remains as there have been reports of fraud and theft of assets which is a limiting factor to the growth of outsourcing locally and internationally.

One of the main reasons companies will consider outsourcing is the overall reduced costs. Outsourcing provides a more efficient approach in controlling operating costs. Costs per additional employee include salary, overhead, equipment/software, training/education, other supplies, and possibly facility costs (Sood, 2005). Another cost savings quality is in overall Human Resources, as outsourcing eliminates costs for future development of employees, current trainings, recruitment, payroll and benefits. There are many markets that are able to reduce operating expense and cost of goods sold through outsourcing. Highlighted in this paper will be IT, electronics, the automobile industry, and customer services.

Development of specific skills: Out sourcing benefits the development of specific skills at a corporation level the same way off shoring does at a global level. Companies outsource in order to take advantage of specialized skills and knowledge that itself does not own or that can’t be efficiently acquired. In this case out sourcing leads to higher efficiency and better quality provided by third parties for a specific business processes. Moreover the third parties can further specialize to take advantage of the resulting economies of scale and mitigate the possible shortage of specific skilled and talented workers.

Past research has progressed along several paths. First, some researchers have focused on motivations and reasons for outsourcing activities (Conner and Prahalad 1996; Greer et al. 1999; Sinderman 1995; Mullin 1996; Grant 1996; Frayer Scannell and Thomas 2000). According to this perspective, the global imperative for outsourcing accelerates as firms evolve from sellers of products and services abroad to setting up operations in foreign countries and staffing those operations with host countries or third party nationals (Greer et al. 1999). Most corporations believe that in order to compete globally, they have to look at efficiency and cost containment rather than relying strictly on revenue increases (Conner and Prahalad 1996). As companies seek to enhance their competitive positions in an increasingly global marketplace, they are discovering that they can cut costs and maintain quality by relying more on outside service providers for activities viewed as supplementary to their core businesses (Mullin 1996; Grant 1996).

With growing competition and growing workforce costs, increasing number of organizations are turning towards outsourcing - wherein the key functions like marketing, finance, sales etc while the secondary functions like IT, accounting are distributed to economies which are driven by lower labour costs. Thus because of outsourcing there is a complex and complicated web of employees, customers, vendors both collocated and dispersed around the world. Outsourcing has both positive and negative impact on the way organization works and its affect is going to increase in future too.

The success and failure of an entity will depend on how effectively it utilizes its available resources. Managers must attempt to optimize the acquisition, allocation and development of the assets of the firm. Managers always equate assets to the physical and financial assets of the firm and often ignore the most important and the key element to the success of the organization – its employees. In service related businesses tangible assets contribute far less to the value of the service than do the intangible assets. These intangible assets are represented by the accumulated and current knowledge of the entity’s past and present employees. The abilities of all the employees of an organization at all the