Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Advantages and disadvantages of global outsourcing
Advantages and disadvantages of global outsourcing
Advantages and disadvantages of global outsourcing
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Advantages and disadvantages of global outsourcing
For my topic I chose outsourcing. Outsourcing has positive and negative impacts on the global business world. When thinking about outsourcing there are quite a few aspects that have many sides. Outsourcing has been known all over the world. In reviewing outsourcing you must take into consideration every single detail that is involved into making outsourcing what it has become today. As you continue to read this paper you will learn how outsourcing has changed lives for better and for worse. Outsourcing has been a topic that has also made some quite skeptical. The question you might be wondering to answer is why outsourcing? We can start off with the positive aspects of outsourcing. In viewing outsourcing usually what comes to mind is to control …show more content…
One of the first initial negative impacts is the possible loss of control that a CEO can have over its company when it comes to the processes of business. Next, is any problems that can arise related to the time involved to make a change or the problems in the quality provided. Following, is the responses one might be a problem in the expectations versus the reality of the performance. With outsourcing the people being outsourced come to the realization of what they actually get with benefits and results since it ends up being much lower than what they were promised. Outsourcing brings a major challenger when the lingual accent is lacking meaning if one person only speaks spanish a translator must be needed to help with the communication needed. Another aspect involved is how one customer or client can become enraged because they weren't satisfied with the job done and works for the union and can have everyone involved as a …show more content…
For instance, issues can arise in the maintenance and engineering departments. Simply because people in those departments are worrying more and more each day that they will be losing their jobs to someone else. Next, a big controversial issue is how people happen to lie on their applications that they know how to do a certain job and when they're called on to perform said job they have no idea what they're doing causing business's more money. In most states restrictions are being considered taken regarding outsourcing due to the negative aspects becoming much higher than the positive
Globalisation is a growing phenomenon that is the result of various developments in the global environment, each of which merits an individual analysis of its social impacts. For the purpose of this analysis, the focus will be placed upon arguably its most controversial aspect, offshore outsourcing. Offshore outsourcing, or offshoring, is becoming an increasingly common business practice as a result of a combination of the recent technological advancements in the areas of transportation and communication, and the increased competitiveness of the business world. From the perspective of firms, tapping into cheap labor from less developed countries is a very logical business decision to reduce costs and maximize profits. This has not only motivated businesses to engage in offshoring, it has sometimes been critical to their survival in fiercely competitive environments. Before making judgments regarding the righteousness of offshoring from different perspectives, its impact on stakeholders must first be evaluated.
... bring the anticipated benefits, and in some instances can be a risky proposition (Chin, 2003). Villcocks and Lacity (1998) stated that among the possible disadvantages are the potential loss of control over critical functions such as timeliness and quality of service, difficulty in monitoring vendor performance, difficulty in explaining the business needs to vendors, the potential for loss of company secrets as well as intellectual property, and the high cost of outsourcing contracts. Schools also risk developing a dependency on outside agencies, lowering employee morale, loss of development skills for employees, and having to face the prospect of managing relationships that go wrong (Kakabadse & Kakabadse, 2000; Hayes, 2001). By outsourcing, not only do schools lose some of the personal touch in servicing their employees but their clients as well (Rombel, 2002).
Recently outsourcing has been in the news, especially during political election years. It seems to be a phenomenon that is causing much concern among the population. But exactly how is outsourcing effecting both workers and businesses? And is it as big of a problem as politicians describe?
Outsourcing is a complicated and a multifaceted subject that involves a “business[’s] purchase of parts or labor from another company rather than maintaining a sufficient enough number of its own employees to do the same work in the country where the company is already based” ("Outsourcing"). The first practice of outsourcing was in medieval times when “nation-states called in soldiers-for-hire to help their own military forces during ongoing conflicts” ("Outsourcing"). Many think of outsourcing as a one way trade of production facilities moving outside of a companies locale but in actuality it is a two way trade that also involves companies from other areas moving their factories to local areas where conditions are beneficial for the specific business. Outsourcing has evolved but the main idea has remained the same. The recent increase in outsourcing “was initiated by Wall Street pressures on corporations . . . . for increased profits . . . in the production of goods and services marketed in the U.S."(Roberts).
It is difficult to determine whether offshore outsourcing has a positive or negative effect on the U.S. economy. It may actually depend on which perspective you take on it. As stated by Hira and Hira (2005), outsourcing in the services sector is a major shift in how the economy operates and will have serious impacts, both positive and negative, on the trajectory of economic growth, distribution of income and the workforce. However, there are many factors to take into account when considering globalization. Companies must familiarize themselves with the various rules and regulations of global business, tariffs, trade agreements and barriers, and decide how to go global; global consistency or local adaptation. All of these issues affect a company’s plan to move forward with offshore outsourcing.
As the problem of job outsourcing becomes more of an issue in politics, elected officials like the President and Congress will no longer be able to ignore the dilemma. The war in Iraq has been at the forefront of the presidential race but the importance of outsourcing American jobs seems to have been slightly overshadowed. If the issue of outsourcing is not watched carefully and a definitive plan hammered out, a trickling down of negative effects may occur within the U.S. economy. However, there is a polarized opinion on the effects of this “phenomenon”.
Since the concept of outsourcing was introduced it has been a subject of debate between politicians and citizens of the United States. Remarkably, it was the United States who supported outsourcing and now it is the United States that feels its economic progress is being threatened by outsourcing. One may argue that the financial situations that existed two decades earlier are not the same as they are today, thus the change of time, business priorities of economies have also changed.
Outsourcing is a technique for companies to reassign specific responsibilities to external entities. There are several motivations for outsourcing including organizational, improvement, cost, and revenue advantages (Ghodeswar & Vaidyanathan, 2008).
Outsourcing in the long-run might negatively impact employees. Timbuk2 may decide to move the company as a whole to China is order to reduce their operational cost. This can be a possibility as a result of technology change and the ever increasing cost of living. Another important area Timbuk2 must pay attention to is their sales and customer base. If their sales decrease, is it due to customer dissatisfaction due to price, quality or diminished interest in the product. Timbuk2 can control the quality of the product by regularly doing product and process
With the United States’ economy in a depression and our unemployment rate skyrocketing to record highs, job-outsourcing has moved to the top of the list of controversial issues. Froma Harrop’s essay New Threat to Skilled U.S. Workers and Thomas Friedman’s essay 30 Little Turtles discuss two different viewpoints of job-outsourcing, and their effects on society. Does our government really want to cut back on job-outsourcing, and what can society do to help the issue? Friedman’s standpoint on job-outsourcing shows how it is emotionally beneficial to other countries and Harrop’s factual standpoint shows job-outsourcing regulation, however, I feel that our citizens are unaware of the opportunities and our government is eager to send the jobs overseas.
Kibbe, C. (2004, 07 09). Outsourcing: the good, the bad and the inevitable. New Hampshire Business Review, pp. 1A-21A.
Piatak, Tom. "Outsourcing Threatens American Workers." Opposing Viewpoints: Globalization. Ed. Louise I. Gerdes. San Diego: Greenhaven Press, 2006. Opposing Viewpoints Resource Center. Gale. Lynbrook High School. 6 Dec. 2009
Outsourcing has been around for many years. In this paper, I will discuss some of the history of outsourcing, the good things about outsourcing, and the bad things about outsourcing. Outsourcing is important because many companies rely on it in order to get many different products and services to their facility on time and in good shape. Outsourcing is a huge part of the business industry today. Any business can be affected by outsourcing.
There is a wide-range of experiences an individual will take, due to Outsourcing. Outsourcing has an array of benefits and setbacks, though is often use
A disciplined approach to management eying leading employees, improving the management team and building the business strategy. Instead of treating each problem as a one off. They design systems and structures that make it easier to handle in the future. (Techrepublic, 2015) 2.2. Risk of exposing confidential data: When an organization outsources HR, Payroll and Recruitment services, it involves a risk if exposing confidential company information to a third-party Synchronizing the deliverables: Some of the common problem areas include stretched delivery time frames, sub-standard quality output and inappropriate categorization of responsibilities. At times it is easier to regulate these factors inside an organization rather than with an outsourced partner Hidden costs: Although outsourcing most of the times is cost-effective at times the hidden costs involved in signing a contract while signing a contract across international boundaries may pose a serious threat Lack of customer focus: An outsourced vendor may be catering to the expertise-needs of multiple company at a time. In such situations vendors may lack complete focus on your organization 's tasks. 2.3. 1.Know the