Outsourcing is all about one company being contracted to provide services by another company, which can otherwise be offered by employees of the company in-house. Companies offering outsourcing services would often do these tasks (Reingold, 2004). …
Download file to see previous pages...
Companies contemplate on various ways in which they would reduce on the output of their money and intern saves on cost. Therefore, the main idea that comes across is outsourcing of some of their work. There is a notion that outsourcing has the ability of saving on cost of employment. The fact is that most of outsourcing companies work on a low budget their workers are not provided with benefits and most of their employees do not require overhead expenses (Olga, 2003). Moreover, cost can also be reduced if the company offering outsourcing services is from a different country. This is because of differences in economic stature, which will lead to high differences in currency value.
The other reason why some companies outsource their work to experts is that they want to involve themselves on other business issues. This is due to the urge of concentration by individuals in a company (Lazarus, 2004). The experts will ensure that work is done, and the contracting company will leave everything to them as they concentrate on other things. The management will also give out work, which will not require their attention and resources, as they will have an easy time managing a company from within. On the other hand, companies involved with outsourcing can maintain their professionalism by operating on a streamlined direction of acquiring excellent technology, which could not be available in locally (Olga, 2003). Outsourcing helps in globalization of a company, as it is a cost-effective way of building branches and franchises in other countries. The manner in which outsourcing affects cost is indicated in the graph below. is indicated in the graph below. It is clear that outsourcing is an event, which has gone beyond the whole ideology of employment and working from one position as a team (Ryan, 2004). Therefore, it would best if the paper examines some negative effects related to outsourcing in the education sector, society, companies, neighborhoods, and communities (Michelle, 2004). Moreover, the paper will also determine some hidden costs incurred by companies in terms of reducing cost of productivity and decreasing support from customers. Effects of outsourcing According, to some business scholars such as Olga Kharif (2004) argue that companies prefer outsourcing because of low cost associated with it and they will save wages they would give to employees working from within the company. However, with cost of IT increasing every day, companies will realize that they sometimes use more than what they expected to use (Olga, 2003). The industry is always competitive, and most companies prefer offshore outsourcing. However, frustration is drawn back to local employee who would be rendered jobless due to another person elsewhere being given same job. Outsourcing has also created insecurity in the job market as workers can lose their positions as other people can offer their expertise from elsewhere at a cheaper price (Ryan, 2004). The other predicament caused by outsourcing is and associated with joblessness is increased crime rate. People need to survive, and they would do anything to survive. Therefore, people who lose their jobs will turn to crime (Michelle, 2004). Crimes include cyber crimes where people hack into the
...Download file to see next pagesRead More
Cite this document
(“Negative Impact Of Outsourcing On Economy Research Paper”, n.d.)
Retrieved from https://studentshare.org/business/1395060-negative-impact-of-outsourcing-on-economy
(Negative Impact Of Outsourcing On Economy Research Paper)
“Negative Impact Of Outsourcing On Economy Research Paper”, n.d. https://studentshare.org/business/1395060-negative-impact-of-outsourcing-on-economy.
Outsourcing is heavily being employed in America nowadays and has potential implications on the US economy. A vast majority of the items contained in the home of an American have been imported from other countries, thus causing many countries to experience economic boom along with an equivalent decline in the strength of the US economy.
These technological developments play a pivotal role in designing and reshaping businesses and economies. Outsourcing phenomenon is inherently driven by the technology and today it has grown into an inevitable business reality, especially multinational business entities cannot escape this reality.
Reasons Why Free Trade Has a Negative Impact on a Country's Economy When the United States agreed to join the ranks of the Free Trade nations, it did so with the high hopes of being able to freely exchange intellectual copyrights,exchanging goods with other nations, lowering tariffs, lowering the cost of manufacture for in demand goods, and being able to sell these items on the open market at reasonable and affordable prices.
Accordingly, rather than viewing these processes in something of a one dimensional aspect, it will be the purpose of this author to discuss and analyze both the pros and cons of outsourcing as a means of providing a more realistic and nuanced understanding of how this practice impacts the economy as well as the individual shareholder within society.
Total quality management, defined as "set of management practices throughout the organization, geared to ensure the organization consistently meets or exceeds customer requirements" is now being applied by various organizations to meet the demand for low-cost products such as autos (Authenticity Consulting, LLC).
Typical examples of outsourcing jobs include medical transcription, information technology, human resources, law, education, and accounting. It is also not uncommon for companies to outsource customer support and call center functions, manufacturing and engineering.
Nowadays a stereotype is made about Muslims of the world that they are terrorists. All over the world the Muslims are considered to be hostile and violent. This leaves negative and lasting effects on Muslims all over the world. The reason behind making this generalization is the incident of September 11.
It is way to gain competitive and strategic leverage. This study looks to conduct an in depth analysis of the various aspects of IT outsourcing including the human side of IT outsourcing. It also looks to explore the
10 Pages(2500 words)Research Paper
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Research Paper on topic Negative Impact Of Outsourcing On Economy for FREE!