Outsourcing Jobs To Foreign Countries

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 outsourcing, it is a wheel in motion and is becoming more than just a question of whether or not a company will outsource but it is a question of how much or how little of the company’s work will be outsourced offshore. This having been said; let us discuss the benefits and pitfalls of offshore outsourcing.

Companies not only benefit from cost reductions overseas or the ability of the company to specialize in one area of expertise but also outsourcing certain work lets designers and engineers focus on more important tasks. To illustrate, “In Calcutta, India, a team of engineers is designing bottle caps ... Back home in Indiana, a team of engineers that used to design the same bottle caps now focuses on more value-added engineering work since some of their design responsibilities have been taken away.” (Katz, J., 2006). Outsourcing from the start was initiated to reduce non-core tasks, such as inventory management and logistics from the already full list of tasks appointed to company heads, “not an ...

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...g. There is an undeniable fact here, that outsourcing is no longer just a strategy to succeed but a tactic used in everyday business.

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Panchak, P. (2006). Next-Generation Outsourcing. Industry Week/IW, 255(7), 11-11. Retrieved Sunday, July 09, 2006 from the Academic Search Premier database.

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