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Issue 18&19 - Coursework Example

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The task can either be service or production. It always occurs when the firm shifts some of its duties to an outside supplier. Offshore outsourcing the responsibilities are transferred to…
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Issue 18&19
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Download file to see previous pages Memphis University scholars suggest that overseas outsourcing have more advantages to an organization. For instance, it enables the firm to pursue the most labor cost. Labor cost varies significantly from one country to another. Therefore, outsourcing will allow the company to choose the country that it feels that its work is not very costly (Axelrod, 2004). Moreover, adopting lower labor cost will enable the organization to produce its services at a lower cost and as well provide services at more reduced prices. Finally, reduced Labor allows the organization enhances their business profits.
Because of deferent perception to outsourcing, it can create a platform for politics. For instance, many argue that outsourcing causes the jobs that can be done by the locals to move overseas. On the other hand, outsourcing will also help the particular country to boost its domestic economy. On the contrary, practitioners argue that offshoring can have the local options (Müller & Müller, 2000). Firms seek to offshore labor in order to keep labor cost at a minimum level as possible, so as their services and products can reach their potential customers at a lesser cost.
From an international point of view, countries outsource professional jobs to countries that have the most cost efficient labor. The most popular outsourcing countries are China and India. Employees in these countries have adequate educational backgrounds to enable them to carry successfully out the tasks ahead of them.
However, outsourcing has its merits and demerits that firms and countries need to put into consideration before starting the exercise. Outsourcing allows the company to operate in an increasingly competitive marketplace across the world. In addition, outsourcing enables the firm provides service and products in 24 hours daily, more so to the customers who need around the clock ...Download file to see next pagesRead More
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