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Internship Paper - Essay Example

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Rarely can one find a label that reads made in America. This is caused by outsourcing which as a trend has become quite common. During the course of this quarter, I have had the…
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Download file to see previous pages This got me thinking that if as a country we could bring back industrialization to the US, rather than act as a service based country, then we could create more jobs. I also considered the counterarguments against this.
Lower costs associated with outsourcing are probably the prime benefit that a company could get from outsourcing of business (Greaver 65). The company gets the work done at only a fraction of what it would have had to invest locally, all the while receiving products of high quality. Due to the difference in standard of living as well as pay that exist between the US and such countries as Mexico and China, outsourcing ensures lower labour costs. By outsourcing to these countries, companies can be guaranteed at least 60% savings on costs. Another advantage of outsourcing is the distribution of risk. When a company outsources certain functions, they also do away or distribute the risk inherent in running the particular function (Greaver 65). An example: if a company feels that management of the payroll is claiming operational money and time, then it can outsource the function to a service provider.
Outsourcing also improves the quality of customer service. Outsourcing allows the company service their clients faster, decrease turnaround time, and give better quality. It allows the company to achieve better people management (Greaver 66). Since outsourcing ensures the necessary skills needed to run particular functions are taken care of, the company achieves greater flexibility in key resource investment. Instead of working toward hiring for back office operations, the company focuses on acquiring resources for core competency growth. Outsourcing to China has the advantage of time zone difference. While business is closed in the United States, Chinese operations could get work done. This is beneficial for industries which provide all hour customer support (Greaver 67).
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