Job Outsourcing

Job Outsourcing

Abstract

The paper begins by defining the word outsourcing and describing its many ways of being used and implemented. Thereafter, we look at the reasons for outsourcing. The reasons which are identified such as competitive advantages and at the same time, time and cost saving. Additionally, the paper looks at how outsourcing can improve organizational effectiveness, where some of the methods include; organizational strategy, effective management, cost cutting and operational flexibility. Lastly, the paper looks at how organizational effectiveness can be impeded. This is through resistance to change from employees, poor management and loss of strategic control.

Outline

Following is the outline of our paper:

Introduction

Outsourcing is contracting of the business operations of the company to external companies or individuals.

Describe the reasons why companies would decide to outsource and process of outsourcing.

While the chief reason associated with outsourcing is considered to cost, companies do outsource business operations to focus on its core competencies.

Describe reasons on how choosing to outsource can benefit the company.

Outsourcing can reduce cost, let company focus on core business operations, make use of external talent and make a company more competitive.

Discuss the negatives and effects outsourcing has on the nation and not only company.

Outsourcing has caused many companies employing hundreds of people to close down resulting in the increase of unemployment which has affected the economy of United States.

Examples of current outsourcing and is it too much?

The outsourcing of technical support of in information technology companies and call centers of banks are common examples. Outsourcing with exposing of financial and private information of people without their consent has created severe grievances.

What is currently being done to either support or stop outsourcing jobs?

Made is America campaigns, are one of the steps for the reduction of outsourcing but no long term concrete steps have been taken for the reduction of outsourcing jobs.

Conclusion. The final outcome of outsourcing.

Introduction

Outsourcing can be defined as the process of contracting the business operations of the company at domestic and international level (Hira and Hira 2008). These are the processes which the company use to carryout internally and then it gets the work done from outsourced companies. This process of renting services from outside suppliers has been done in the past but the term “out sourcing” has become popular in the 21st century. Companies have done outsourcing in the areas of technical support (call centers, see figure 1), getting some parts or programs made for integration of computer software and other business activities like recruitment and hiring (Chung and Khan, 2012). In some cases like the credit card fraud of Citibank where the call center agents transferred the money into their own accounts, the outsourcing strategy can backfire on the organization. Often organizations usually don't out source critical functions or activities which are their competitive advantage.

Figure 1: Call-Center Agents, retrieved from Google Images

Reasons for Outsourcing

Figure 2: Retrieved from Network Magazine India

The company decides to outsource due the number of reasons (see Figure 2). One of the chief reasons is if the ...