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 representatives of the company was that more than 1.3 million employees were responsible for doing repetitive tasks in the manufacturing sections and the tasks were mind numbing based on which more errors were being seen in the performance of the employees. On the other hand, in the modern days, the manufacturing is a costly plan and when it comes to paying salaries and wages to more than a million employees, it is beyond being affordable. Thereby in the modern days of intense competition, affording mistakes and humanly errors is not affordable. Thereby these human errors have been replaced by the machine perfection where lesser number of robots will be responsible for doing the mind numbing and repetitive tasks in the manufacturing sections (Schniederjans, Schniederjans, and Schniederjans 100).
One of the main reasons that has been associated in a strong manner with more American organizations outsourcing their manufacturing to offshore countries is that the chosen countries that include China has a great population thereby greater population based on which costs of manufacturing are much lesser as compared to the costs in U.S.. In these cases, the outsourcing moves in Foxconn focuses on reduction of the labor costs and seeing more improvements in working and manufacturing efficiency. There is no doubt about the fact that the efficiencies that are shown by the robots is much higher as compared to what is shown by the human beings. Paychecks, increases in salaries and wages, food and lodgings are not required by the robots whereas these are the main requirements of the human employees (Corbett 25). One of the main disadvantages that have been highlighted in the case of replacing human employees with the robots is great changes that would be noted in the workplace diversity. Nevertheless, there are a number of advantages being seen in the perfection in software control and the engineering needed in the manufacturing sections. Other than the great reduction in the costs, one of the most important advantages that have been mentioned by Foxconn is that the human employees are in a need to be shifted up the value chain rather being stuck in the manufacturing section. The skills of these human employees are to be used at better places and positions within the organizations. Thereby one of the main facts that can be highlighted here is that if more than a million robots are hired in the manufacturing sections, the human employees that have been replaced can be retained for the maintenance and management of the automated lines. Thereby instead of hiring additional employees for the maintenance of automated lines, the same employees will be shuffled thereby causing additional cost savings (Zhang and Alon 66).
The better quality and reduced costs along with an increased efficiency has been the main reason of customer satisfaction and improved businesses around the world. An important asset which is now being enjoyed by the American organizations include the spirit of innovation and when the business units are outsourced, there are a number of workers and employees who enjoy being more innovative. With most of the tiring and repetitive work being taken over by the machines, the employees and the workforce that remains is working on improving their working skills that can contribute much more to the company's working skills. It has been reported that many employees in Foxconn are now improving their skills in high technology fields so that they can contribute more in the manufacturing sections. Thereby replacement of the human employees with the robots can be helpful as greater time is now available to the human employees for improving their work-based skills and to learn more in newer and innovative tasks (Hirschheim 34).
Recommendations
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