What is outsourcing Essay - 2183 Words

nbsp;nbsp;nbsp;nbsp;nbsp;What is Outsourcing? It is a method in which companies subcontract labor and support to outside agencies (Klepper, 1997). How, why, and who companies outsource to are quickly becoming social topics of discussion in our society. Everyone seems to have an opinion on outsourcing. I bet that I can walk into a social gathering right now and hear discussions like â€Å"outsourcing is good for the American consumer† or outsourcing takes jobs away from all of the hard working Americans.† In either case, outsourcing has raised great concerns over its effects on the American economy. In this paper, I will discuss the types of outsourcing, pros and cons associated with outsourcing, management views of outsourcing, employee†¦show more content†¦Also, it may be more expensive to outsource. Sometimes it is cheaper to keep a process in-house as compared to outsourcing. Security and confidentiality concerns may arise, especially with payroll and confide ntial information such as salary (Earl, 1996). nbsp;nbsp;nbsp;nbsp;nbsp;BPO is similar to information technology outsourcing but includes outsourcing related to accounting, HR, benefits, payroll, and finance functions and activities (Embleton, 1998). Business Process Outsourcing (BPO) is a decision to subcontract some or all important, non-core, business processes. This allows companies to invest its time, talent, and capital on basic business strategies that help company growth. Better and more affordable services become available for consumers and taxpayers (Embleton, 1998). Outsourcing allows companies to operate on an around-the-clock, 24/7 production cycle, further adding to productivity (Embleton, 1998). No matter what type of outsourcing a company uses, there is a see-saw effect, someone on the high and low end. There are pros, cons, positives and negatives. For example, if you are a cost-cutting director at a competitive company, the mention of outsourcing, especially offshore, may bring a smile to your face. For computer programmers, call center workers, or factory workers the reaction is likely to be more negative. The primary pro is that outsourcing jobs outside of the U.S. may help toShow MoreRelatedWhat Is IT Outsourcing?1086 Words   |  5 PagesIndia is facing competition from other countries around the world in IT outsourcing. China, Ireland, The Philippines, Malaysia, Vietnam, Poland, and Egypt are just some of the countries that are aggressively looking at IT outsourcing for growth. Over the years, these countries have been developing their country to be able to provide IT outsourcing and lay a strong foundation to sustain this new idea. According to KPMG (2016), some o f the investments these countries have done are build a huge marketRead MoreWhat Are The Challenges Of Outsourcing Research And Development To India846 Words   |  4 PagesThere will be some technology standards issues that the company will encounter by outsourcing research and development to India. Business Process Outsourcing (BPO’s) in India do not always display sufficient compliance with data security and privacy policies that are up to U.S. standards. Therefore, security requirements will be an issue in the research and development collaboration between the U.S. and the India offices. Even though the laws may have similarities, there are no global legal systemsRead MoreOutsourcing American Jobs Essay1561 Words   |  7 PagesIntroduction Outsourcing of American jobs overseas is displacing Americans in the United States. American blue-collar workers and the Middle Class American will soon be a word of the past if the US government continues outsourcing the low-skill jobs overseas. One of the concerns in regards to the outsourcing of jobs is that wages of American jobs versus the wages of the Chinese, Japanese, Indians and Philippians are much less. If these workers were using the same identical technologyRead More Outsourcing Essay1680 Words   |  7 PagesOutsourcing Outsourcing has become a very popular issue, and it has reached an all-time climax. Firms are starting to do this a lot more than than in the previous decade. What is outsourcing? Outsourcing is defined as â€Å"The procuring of services or products, such as the parts used in manufacturing a motor vehicle, from an outside supplier or manufacturer in order to cut costs.† And it has become a big issue in our country. There are thousands of articles and books written on it, and you can attendRead MoreThe Advantages and Disadvantages of Outsourcing1442 Words   |  6 PagesWhat are the advantages and disadvantages to outsourcing in the global marketplace? In these times of great globalization where many countries have erased their borders when it comes to trade outsourcing has become an option for many companies. Whether or not to outsource is a key question that companies must consider. According to the Pros and Cons of Outsourcing, â€Å"The decision to outsource or not is a matter of finding the right balance-the balance between managing labor costs, workflow, employeeRead MoreOutsourcing Of Aviation Maintenance Practices And The Effects Of Globalization1352 Words   |  6 Pages Outsourcing of Aviation Maintenance Practices and the Effects of Globalization Matthew Wilkerson Embry-Riddle Aeronautical University Worldwide May 16, 2016 â€Æ' Abstract Within the aviation industry outsourced maintenance practices have become increasingly more prevalent to maintain current assets. There is generally three processes currently being utilized by the airline industry: outsourcing specific maintenance needs, in-house operations, and lastly, a hybrid approach, which entails a combinationRead MoreLabor in the United States and Outsourcing Essay1034 Words   |  5 PagesOutsourcing emerged on the financial arena during the 1980s and has since then been spreading. Outsourcing production was furthered with the process of globalization which provided a new component leading to the strengthening of resources, skill and labor specializations across the world. The process of outsourcing is using the skill and abilities of a third-party to accommodate society on the foundation of labor. As stated earlier, it was during the 1980s that the process kicked off mainly due toRead MoreOutsourcing : Outsourcing And Outsourcing1541 Words   |  7 Page syears, although outsourcing has been seen as a common method used to achieve a successful business, many literatures on Information System still believe that most of the software could be better off build in-house and this can also be supported with the fact that there are evidences of organisations that took a significant damage from outsourcing. Therefore, whether or not a company should outsource part of their projects, it all depends on how the organisation manages its outsourcing system. This paperRead MoreTaking a Look at Global Outsourcing1407 Words   |  6 PagesGlobal outsourcing has been claimed as one of the major drivers for the globalization of production. Discuss how global outsourcing benefits the firms and why firms choose to engage in outsourcing. Global outsourcing is used by companies to help enhance and develop the business. Global outsourcing also taken by a firm to help solve problems that occur in an Organizations. Global outsourcing is helping organizations to take some expertise from outside which takes outsourcing locally and internationallyRead MoreOutsourcing: Staying Competitive In The Global Market Essays1719 Words   |  7 Pagescompanies are faced with the decision of relocating part of their operation offshore. This paper will address what key elements companies in this situation need to address, such as, quality of customer service provided, security of confidential information, and the possibilities of cost savings, in order to be sure that outsourcing is the best solution for their company. Outsourcing to Stay Competitive For companies to stay competitive in todays global market, many are facing the decision