Outsourcing has made great controversy within a number of industries lately. Essentially, outsourcing is "the act of one company contracting with another company to provide services that might otherwise be performed by in-house employees" (Conjecture Corporation, 2012). Yet, this movement is not as easy or pain free as it sounds. Yes, outsourcing can help keep costs down and allow a company to remain globally competitive; however, outsourcing can also cost domestic jobs here in the United States among other problems -- making it a questionable business strategy. There are numerous advantages to the practice of outsourcing. One of the first and most obvious is the cost savings. Outsourcing helps keep costs way down because workers in other countries do not make as much as their American counterparts. Thus, "the labor savings from global outsourcing can still be substantial" (Engradio & Arndt, 2006). This helps American companies make more profit and contribute more into the underlying American economy. There are also other benefits to the practice as well. Here, the research suggests that "India sells $6.75 billion worth of software services to the U.S., the industry contributes more than twice as much to the American economy by way of hardware and software purchases, customer savings, and U.S. taxes paid by Indian workers" (Kripalani, Einhorn, & Magnusson, 2003). Outsourcing allows for companies to spread their resources, maximizing efficiency and saving money. The money saved helps keep companies afloat and in good standing, which then in turn helps strengthen the American economy. As such, "every dollar of offshoring results in 58 cents of savings to the American economy" (Reingold, 2004). Moreover, outsourcing is a way to stay competitive. With other nations like India and China beginning to really take over particular industries, the U.S. must keep up to remain on top. Outsourcing provides a cost-effective method to stay relative within an ever evolving international...
Outsourcing is a successful strategy to make "U.S. companies globally competitive" (Kripalani, Einhorn, & Magnusson, 2003). Companies like Apple and Whiteleaf have shown great savings potential through strategic outsourcing strategies (Cassidy, 2012). Such companies have used strategic outsourcing for various labor needs within their production line. The product has not changed in terms of quality, yet the cost of production per unit has dropped dramatically, making profits increase. These profits can then be reinvested back into the company for further research and development, allowing innovative giants like Apple remains a top competitor in the personal electronics market, both in terms of hardware and the accompanying software. As such, it is clear that there are a number of benefits American corporations enjoy while turning to an outsourcing strategy.
Outsourcing Jobs and Labor Laws Outsourcing Jobs to Foreign Countries Without Fair Labor Laws government currently does not prohibit companies from outsourcing jobs to foreign countries that do not have unions and/or fair labor laws. Whether this practice is acceptable or should be stopped is worthy of consideration. There are two main reasons for researching this topic. First, the cost to outsource to foreign countries is often much less than the cost
Outsourcing ensures that the development as well as the startups of the businesses is faster and improved. Outsourcing in Foxconn Foxconn is one of the world's leading and most famous electronic manufacturing service providers. One of the most recent outsourcing-based moves that have been made by Foxconn includes terminating more than a million employees and replacing these with robots (Brown and Wilson 88). The main reason that was given by the
Outsourcing ZeusCorp is known for its effective and efficient outsourcing practices. The cost of labor is examined to elevate at a very high pace ever since the global inflation has taken roots in the contemporary market place. By comparing the currency rates and the cost of labor the fact become vivid that outsourcing from third world and other developing countries is a cost effective solution to successfully penetrate the market of
The defects will be the concern of the local manufacturer and not that of the business. This, again, will mean savings on waste, labor and shipping. As a desirable consequence, outsourcing will boost the host country's economic condition by providing affordable products to the citizens. This enhances consumer spending (Marie). Outsourcing manufacturing, however, encourages dependence on the outsourcing partner (Marie, 2010). This is a disadvantage on the side of the
A micro considers the interests and rights of the individual company as the primary concern. Both of these views are valid depending on the lens that one wishes to use. The problem arises when the government is forced to develop policies regarding procurement in this volatile debate. The government must decide whether to take a micro view, favoring the rights of companies, or a macro view that places the
U.S. Government and ethical issues of outsourcing Description of Ideas-5 Analysis of Concepts-6 Evaluation with Reasons-7 Possible Solutions-9 U.S Government and Ethical Issues of Outsourcing USA is at present one of the fastest growing countries as a target for outsourcing. Of late outsourcing which was once the buzzword of corporate America has been looked down upon in recent years because of growing concerns of ethics involved in outsourcing the same. Majority lament the outsourcing of jobs
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