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The society relies on a moral responsibility to follow a system of values and promote human development. Repercussions of outsourcing are evident in America, and they are clearly unethical since American citizens are usually educated in America for the purpose of employment in the same region (Hira & Hira, 2008). Once a company outsources, these Americans face displacement from their jobs (Charara, 2012). Conversely, Asia will benefit since outsourcing leads to increased employment and training in its region. Outsourcing has also contributed to other immoral practices such as discrimination, sexual harassment, as well as wrongful termination of employees in US, Canada or Europe. Asian companies have realized the need to address such factors through devising appropriate insurance policies meant to cover factors such as data security, property, workers compensation, extortion, kidnapping as well as nationalization and all other forms of possible risks.
Presently, outsourcing has become common in America and it is a legal business activity. This is because firms need the freedom to conduct trade internationally besides being able to boost growth within America’s economy. Legal procedures that an outsourcing company follows demands signing of a contract that will cover an array of areas such as the risk of poor performance by the contactor, unforeseen charges, property damages or data loss. The client will also want clearly outlined procedure on how the business will run as well as the day-to-day management. Modes of handling termination or breach of contract are also necessary in the contract.
Positive business implications that are due to outsourcing involve acquiring competitive advantage in the market (Hira& Hira, 2008). This is achievable through costs’ reduction, improved quality, and exposure to advanced technology, availability of labor as well as the ability to combat
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This paper begins by defining outsourcing and then describing the different forms of outsourcing. Next it outlines why organizations opt to outsource and how they select what to or not to outsource. The paper then dwells on the advantages and disadvantages of outsourcing from two perspectives: from the point of view of a company and from the point of view of the country.
Many people know that outsourcing has been a way to save money in the long run. When information systems problems happen, it is easier to bring an expert in to fix the problem because it is less costly. One of the reasons it is less costly is because a consultant can be hired for a short time and the company does not have to pay overhead or pay a regular salary and benefits to an employee.
It is a task or an operation that can be done by employees of the internal organization but are instead contracted to a service provider for a significant period of time. The service provider can be offsite or onsite but the most common method of outsourcing is off shoring of activities to different developing countries like India or China.
Most multinational companies outsource their production and manufacturing activities, but these organisations are under constant pressure to control costs. They have to outsource non-core but essential services. The question of time also demands outsourcing since products have to get to the market as quickly as possible.
As a result, outsourcing has been increasing in the healthcare industry over the recent years particularly in nuclear medicine, ophthalmology, dental services, radiology and imaging, and oncology. The increasing cost of technologically advanced equipments is the major factor enhancing outsourcing approach in the healthcare sector.
While in all markets executives think outsourcing is better for the world economy rather their own markets, the issue has become politically sensitive in America (P&P, 2004). The issue has become highly emotional
There have been many reasons for the companies to outsource there is business and some of them are trying to cut costs of IS services, the demand for good quality systems and the inability of the company to establish complex computer systems. The major hurdle in
These considerations lead to decisions on the investment level for captive resources and the extent of outsourcing to support operations.
Outsourcing has always been a part of all enterprises, except to the degree to which it is
They have been able combine their professional activities with the operation of the firm. According to usatoday, most of small businesses lack the ability to employ permanent workers. Thus, they prefer outsourcing their portions of work to people online.