Outsourcing Best Practices in the United States

Introduction

Outsourcing began in the early eighties when organizations started delegating their non-core functions to an external organization that was specialized in providing a particular service, function or product. In outsourcing, the external organization would take on the management of the outsourced function. Most organizations choose outsourcing because outsourcing offers a lot of advantages. When organizations outsource to countries like India, they benefit from lower costs and high-quality services. Moreover organizations can concentrate more on core functions once they outsource their non-core functions. Outsourcing can also help organizations make better use of their resources, time and infrastructure.

In outsourcing, the outsourcer and the outsourcing partner have a greater relationship when compared to the relationship between a buyer and a seller. In outsourcing, the outsourcer trusts the outsourcing partner with vital information. Outsourcing is no longer confined to the outsourcing of IT services. Outsourcers in the US now outsource financial services, engineering services, creative services, data entry services and much more. Most organizations are opting to outsource because outsourcing enables organizations to access intellectual capital, focus on core competencies, shorten the delivery cycle time and reduce costs significantly. Organizations feel outsourcing is an effective business strategy to help improve their business (Williamson, pp 269).

Discussion

Outsourcing Best Practices in the United States

Outsourcing Supporters say the reductions in business costs help create jobs. There are a lot of government agencies using outsourcing services, saving millions of dollars, a direct effect on the U.S. economy and federal spending. A common theory holds that people can pay low wages for work means that companies will be able to produce things more cheaply and transfer these savings to consumers. The reduction in prices may mean more spending from consumers and companies can hire more workers in the U.S. In addition, many argue that employ workers in less developed countries improve their economic and trade for U.S. products increases. It also increases the ability of a country to pay their debts to the U.S., and can promote better political relations. Companies benefit economically by selling their products abroad.

This means they can hire more people in the U.S., and lower their prices on products to U.S. consumers (Uzzi, pp 35). Not all people in other countries benefit economically from outsourcing and some companies are dedicated to providing optimal working conditions. Many of these outsourced jobs are done by children or by adults working in inhumane conditions. The abuses of foreign workers cannot benefit from U.S. trade or political relations. Virtually no one in any aspect recognizes that outsourcing can be completely eliminated. Some feel that companies are doing some kind of tax evasion and depriving the government of money needed, plus the same suggest companies are responsible for hiring other outsourcing services, and reward them for maintaining jobs within the U.S. Others feel that the temporary loss of jobs will be followed by higher growth in the U.S. and ultimately will be worth the expense. Given below, are few companies that make use of ...