Outsourcing, Advantages and Disadvantages

 

T.U.I

Randy L. Sult

BUS401, Module Three, Case Study

Outsourcing, Advantages and Disadvantages

Dr. Yi Ling

16 November 2009

        

        What is outsourcing? When a multinational company subcontracts services, shifts resources to another company outside its boundaries, it is considered to be outsourcing. Increasingly, in today’s business environment outsourcing is in the spotlight and heavily debated about.  Some say its desirable and others feel that it’s undesirable.  There are tens of thousands of articles on this topic and many personal stories have been written.  Congress and State governments have tried to stop it or gain political points by saying they are against it.  “Yet much of this discussion is beside the point. Offshoring is here to stay (as long as the cost savings are for real) and there's little point in hand-wringing over whether it should or shouldn't take place.” (Reingold, 2004)

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        Successful businesses make a profit and labor cost is a major factor in outsourcing.  It is the most obvious and the reason outsourcing is here to stay.  It is also a main reason that government in the U.S., both at the national and state levels have sought to regulate.  “The momentum against the export of white-collar U.S. jobs has been building for months. Congress in early June began considering bills to close an immigration-law loophole where foreigners can service U.S. clients using guest worker visas. Representative Nancy L. Johnson (R-Conn.) has asked that large  companies disclose how much of their ...

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