The Offshoring Debate in a Small Organization

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Question 1 "The Offshoring Debate in a Small Organization" by Benny Sisko Many people imagine only enormous Fortune 500 companies as moving production and jobs overseas. However, in today's weakened economy, even smaller businesses are now opting for outsourcing more and more to keep costs low. Even smaller companies have to deal with complex issues that are normally thought to be dealt with by larger Fortune 500 companies. Yet, despite benefits, there are also high risks involved in outsourcing, risks that go far beyond the boundary of the single organization in questions. There are a number of major benefits of outsourcing. Smaller companies can dabble in outsourcing, but often not so much in offshoring, which often requires higher initial costs despite the overall costs savings (Kumar & Salzer 2010). Essentially, outsourcing focuses on using lower labor costs to get production done in other countries where costs are not as high as the United States (Stuart 2011). Outsourcing is becoming increasingly less expensive as more and more companies are jumping on board and influencing foreign manufacturers to keep prices low. Some small businesses may have no choice but to outsource, while others do it to save costs and increase profit margins (All Business 2008). Here, the research states that "Outsourcing converts fixed costs into variable costs, releases capital for investment elsewhere in your business, and allows you to avoid large expenditures in the early stages of
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