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Eassy - Essay Example

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Insert Name Tutor Course Date Introduction Outsourcing, at times referred to as off shoring, is a common practice by different companies in attempts to reduce costs by transferring portions of work to outside suppliers rather than completing it internally…
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"Eassy"

Download file to see previous pages According to Bardhan and Dwight, several factors can endear a company to outsource its business operations. Off shore labor laws, wage laws and tax laws favor the idea of outsourcing as there is almost a certainty of maximizing profits through low cost labor. Workers abroad are often willing to work longer hours for less pay than those in the United States where there could also be a lack of expertise in certain areas of business process. In addition to this, the company is offered a great diversity of skill and kept abreast with emerging technology from various ends of the globe that go a long way in improving service delivery and quality of service. Further still, the company that off shores acquires global status and recognition in the world market which is a huge plus in its operations. This in addition to the fact that off shoring some business operations actually enables a company to shift focus to other crucial areas of the business is of unparallel value to the company growth and development (Bardhan and Dwight, 22). However endearing these advantages of outsourcing may be, several negative implications and concerns also lie in wait, both to the company and the United States economy. The good that may result from the endeavors of outsourcing almost always serves the interest of the top brass of the company only. Little or nothing at all of the entire benefits actually trickles down to the middle level workers or the public in general. Quality concerns arise as a result of outsourcing. As long as the outsourcing contracts are honored, the outsourcing company may tend to be motivated by profit to decrease expenses and condone shoddy work. The employees of the company may not also have the loyalty to the business, a trait that is often priceless in ensuring success of the operations. Workers may change jobs or move to greener pastures whenever they please or sense danger leaving the company in turmoil and incurring further costs as such with hiring and recruitment as cited by Cromie (54). There are also numerous hidden costs that arise from off shoring business functions. For instance, the process requires the hiring of a lawyer(s) and signing of contracts. Major budgetary loopholes appear for exploitation to the detriment of the company and anything not covered in the contract will be basis for the company to pay the additional charges. Other regulations regarding this exploit also seem to secretly add to costs of operations. Failure to pay wages strictly as stipulated can result in several implications like fines, back pay awards or even disqualification from filing any further H1B1 visa petitions for future workers. There is the risk of a company exposing some of its important and confidential operation information to third parties as a result of off shoring. This may render the company weak in the face of any arising or already established competition. The company also loses management control of outsourced business functions leaving several critical decision makings out of their hands. Some of these outside decisions may at times lead to bankruptcy. Language barrier and other cultural issues often come to play a negative role during outsourcing, majorly resulting in breakdowns in communication and even rejection of certain company products and services on cultural and religious grounds. Other problems include inappropriate categorization of responsibilities causing mayhem and a complete eyesore (Bergsten, ...Download file to see next pagesRead More
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