• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Outsourcing Advantages

Extracts from this document...

Introduction

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. ...read more.

Middle

At the state level, legislatures in Maryland, Washington, Connecticut, Missouri, and New Jersey are considering laws banning outsourcing of government tech-services contracts to low-wage developing countries. Even if they don't pass, though, they might make a U.S. company think twice before outsourcing more work to India and elsewhere." (Manjeet Kripalani and Bruce Einhorn in Bangalore, 2003) Expertise and experience is another factor in the decision to outsource. When a multinational company is looking for specific skill sets, production methods and trained staff, it chooses to outsource to companies who can take on the responsibility. And it works both ways. "As they expand into the higher-end tech-consulting business, India's top three IT companies, Wipro, Tata Consultancy Services, and Infosys, are hiring more U.S.-based marketing and consulting executives." ...read more.

Conclusion

Another disadvantage is the decline of wage rates. The competition for jobs increases and local employers are able to drop the wages due to supply and demand. This can also affect the local and national economies due to the declination of consumer spending, less taxes paid, and more government programs being taken advantage of. It is important to remember that as the global economy continues to grow and integrate further, outsourcing is a reality of business that is here to stay. The biggest negative impact of this will continue to be on the human capital. Continued education of the workforce and skill development is the key to success as America competes for the best paying jobs in the world. Outsourcing has many advantages and disadvantages as discussed, and it will continue to be a topic that will be debated far into the future. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Management Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Management Studies essays

  1. Innovation For Business Success. It is possible to be innovative in both large ...

    This company has proven by example that such interactions can be highly positive in delivering value creating innovation outcomes. Investment in innovation and its rewards The Specialty Group spends approximately 5% of its revenue directly on its innovation efforts, and plans to increase this ratio.

  2. Outsourcing Report. Objectives are: To ...

    All these leads firms to opt to go for outsourcing. Outsourcing provides livelihoods for young people who are technologically savvy in countries like India and China. This helps them move into the ranks of middle class. On the other side, workers in industrialized countries are being displaced in huge numbers.

  1. Problems in outsourcing. I have chosen Accenture, the worlds largest business consulting organization which ...

    The low cost countries like India, China and Brazil are having their own infrastructure to perform the outsourcing at very lower prices than the developed western countries. However, the problem is with the different work cultures that are prevailing in both the areas and hence it became problem for the companies to synchronize the outsourcing among the employees.

  2. The report aims to highlight the impact outsourcing has had on General Electric Company. ...

    It was one of the largest foreign investors in Japan, had an enormous presence in Europe, employed more than 20,000 in India, and was widely present in Latin America (Vietor and Veytsman, 2007). 1.2 Aims The purpose of this report is to evaluate the impact that outsourcing has had on GE.

  1. What is Outsourcing

    Major public and private organisations in the UK such as Inland Revenue and Rolls Royce have outsourced their information systems management to electronic data systems (EDS). At present, outsourcing is most popular in central governments and the financial services industries.

  2. Report on Bata in India

    The company offers a wide range of footwear for men, women and kids. Its key brands include Bata, Hush Puppies, Scholl, North Star, Power Marie Claries and Bubble gummers. In addition to footwear products the company also offers accessories for men and women.

  1. Nike's use of outsourcing.

    Outsourcing has become the current trend in how the companies in the nations of the world do business and modern economists declare that it?s irreversible. It is hoped that since its principles began after an age of conflict, outsourcing could very well be the agent for interdependency and cooperation towards mutual prosperity between peoples.

  2. The relationship between outsourcing and technology, outsourcing and the global crisis.

    peak period of traffic congestion or in the time of telecommunication network errors could lead to delivery delays and products unavailability, thus possibly disrupt the supply chain and eventually ruin businesses. For instances, significant delays in ports of Long Beach, Oakland or Seattle recently have played havoc with the lead

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work