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How outsourcing and offshoring effects US businesses that use this resource, and the American workers/communities that are impac - Research Paper Example

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Whereas we were often led to believe that outsourcing and/or offshoring is a process that hurts the United States economy and by extension the workers within the economy, the reality of the matter is that there are a variety of costs and benefits to these practices…
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How outsourcing and offshoring effects US businesses that use this resource, and the American workers/communities that are impac
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Download file to see previous pages As a function of understanding and appreciating the way in which offshoring and outsourcing can have both positive and negative effects upon the economy as well as the individual worker, it is the hope of this author that and more nuanced appreciation for these practices can be engaged with as a result of the preceding analysis. Naturally, the first and most positive aspect that is often presented with regards to offshoring and outsourcing is with regards to the level of cost savings that can be generated in the particular firm/organization or with the economy as a whole (Bajec & Jakomin, 2011). Furthermore, the cost savings aspect of offshoring is almost invariably the root determinate with regards to why a given business might opt for outsourcing functions in the first place. Similarly, they can gingerly related and if it is with regards the fact that oftentimes the third party service providers excel at the particular services that they provide. This not only means that the entity in question is able to save a significant amount of money by offshoring and/or outsourcing a particular good or service, they are also able to provide a better quality benefit to the end consumer did the fact that they do not have to spend disproportionately large levels of income in order to produce or generate high-quality good or service. Likewise, yet another benefit that outsourcing and/or off-shoring is able to provide us with regards to the issue of capacity management. Whereas in the US economy is oftentimes difficult to react to and meet the changing needs and demands of the consumer market, if a particular good or services off-shored, the responsibility and headache of meeting tight deadlines, hiring additional personnel, and expanding capability in order to meet the needs of contractual partner in question is all placed upon the third party. Many times, these third-party entities are not constrained by the same labor requirements, insurance demands, high costs of shoring employment. Therefore, the firm or entity that is engaging with them is able to realize yet a further level of cost savings with regards to the level of expansions contraction that will necessarily take place during the course of the business process. Naturally, although it can be said that there definitely are benefits to the process of outsourcing, it is undeniable that such a process necessarily robs the system a certain level expertise as well as financial strength. As such the first major drawback which will be discussed is with regards to the impacts of currency outflow with regards to outsourcing and off-shoring. Due to the fact that the money that is sent to a third-party nation and/or worker is outside the US system, it is not able to be utilized in order to provide a net benefit for the workers were citizens (Raasens, 2012). Naturally, as a part of the level of globalization that currently exists, such a factor cannot and should not be understood to be ultimately detrimental. Similarly, one of the most common drawbacks of outsourcing is with regards to the linguistic barriers that it often provides. Although not all outsourcing and off-shoring activities are with regards to call centers, the reality of fact that the broad majority of them are. Accordingly, these call centers are utilized by individuals within the United States who are oftentimes not used to the particular accents or dialects of individuals that they are ...Download file to see next pagesRead More
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