Outsourcing: White Collar Exodus

However, there needs to be serious analyses done to determine the correct action to take. Financially, many outsourcing deals make sense. Furthermore, it gives businesses an opportunity to have business segments performed by professionals or in a much more efficient fashion; if the proper workforce or operational procedures are not in place. In a small business, I believe that outsourcing is a great way to have complex or strategic roles filled within an organization. Additionally, the customer base is smaller and allows the small business to still interact intimately with each customer. However, for a large business, outsourcing may create holes within the organization that makes them vulnerable. Specifically thinking about customer service roles, Vitthal Gore (2013) talks about the emergence of call center or Business Process Outsourcing (BPO). As the 21st century begins to impact the globe, many countries are being targeted for their people as the new-age workforce (Gore, 2013). Additionally, Gore notes as more people become competent in the English language, the easier it is for a business to tap into the untouched workforces of the East. While many times cheaper for companies to outsource their customer-service segments, many Americans expect a high-level of service from their provider, and as such, some of those quality controls may be lost in a total outsourcing (Gore,

Efficiency of a company turns on being able to produce in the shortest amount of time while maintaining quality. Thus, outsourcing allows a company to be efficient where in-house the same task could not be accomplished in a reasonable amount of time.

As with so many global trends, there is significant disagreement over the implications of global competition in services for American prosperity and competitiveness. Many people are pessimistic about the impact of offshore outsourcing at a time when American workers are having more difficulty finding employment, since it creates personal hardships, reduces the tax base and increases demands on our safety nets. Competitors from lower-wage nations, it is feared, could put

“Outsourcing refers to the practice of contracting workers outside of a company or business for work duties or services previously performed by company employees or “in-house”. This practice is also often referred to as offshoring due to the increasingly prevalent use of “non-U.S.” service providers for these outsourced duties. However, strictly speaking, outsourcing can and does refer to the use of contracted labor provided by individuals outside of an organization, but still within the U.S.; whereas when these same services are provided outside the U.S., it is both outsourcing and offshoring.”

(Pearlson,2001). Cost is the most important factor when the enterprise make a decision of insourcing or outsourcing. If the company produce the products or service on its own, there are costs more than producing, which can include investments of researching, training, and equipment.The investment of insourcing can be a lot more than the outsourcing because of economies of scale.Outsourcing providers can gain significant savings from economies of scale, which client companies usually can’t get on its own(Pearlson,2001). This benefit could be magnified in IT outsourcing.In the case of Project Harmony, as a food company, Campbell soup was a lack of sufficient scale within their own IS departments and IT technical expertise, so the saving between outsourcing and insourcing was significant.To conclude, cost reducing is the first of core benefits of outsourcing due to economies of

Outsourcing is a practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally. (Investopedia) Outsourcing jobs has become increasingly popular in the economic realm of the world since the mid-20th century and has since then become a more controversial topic. The United States economy has been under the microscope for the last 4 years due to the economic recession. In today’s global business competitive environment, companies must find innovative ways that adapt to new strategies to sustain revenue generation, while also remaining competitive. This paper gives the effects that I have found to be most pertinent to the ongoing debate over outsourcing jobs, and how it can affect the U.S economy.

As described in the article, “Outsourcing - Pros And Cons” by Kristin Carpenter; “Outsourcing is basically the practice of one company to contract another company to provide the services that could have been performed by their own staff…. One of the main reasons why companies are into outsourcing is diminished company resources, both in financial terms and in manpower costs” (Carpenter). Because the most powerful American corporations in the U.S are no longer producing their merchandise in the U.S but in developing nations, in order to reduce the cost of labor and increase productivity, the United States no longer has companies that produce jobs in America. And due to the gradual growth of the use of outsourcing, American employment opportunity has decline greatly, leaving many people unemployed and harming our economic strength in the world.

Let’s talk about a positive aspect of outsourcing business. “Contractual Obligation: The liability of a service provider is higher than that of an in-house employee. This makes working with them a safer bet for businesses.” At least you can be at ease that the people you are working with overseas are well trained in the business that you are outsourcing.

Outsourcing is a process of a company obtaining the services from an outside vendor. These services can be of different forms like IT services for a software company, voice services for a customer support industry, legal services for companies and small part suppliers for manufacturing companies etc. The main reason for a company to outsource its services is cost savings

Equally, companies based overseas cannot be managed adequately from the United States. In other words, firms who outsource jobs take a major risk that the contracted foreign firm will do its job well. A firm can only assume that the level of service from overseas manufacturers will be the same as the level of service in the United States. There is also the question of a firm's reputation, when outsourcing becomes extremely difficult to monitor. Companies producing overseas will find countries like China, is primarily lacking the standard level of quality control, unless extreme effort and time is implemented. Without proper measures, this can result in harmful products to US consumers. It is also, very difficult, expansive, and most of all expensive to press a lawsuit across borders to correct these problematic

Outsourcing would allow the OSI to focus only on its core business and would be more cost effective for it to reduce capital infrastructure costs. Also improving employee satisfaction with higher value addition jobs and making the best use of competitive resources available worldwide. Using an outsourced company (TIS) would give it the same standard hardware and software platform. And should be high speed and have a lower cost of Telecommunications.

Outsourcing has existed since many years; with the development of technology it’s easier to do business, and communicate between countries in seconds. This process involves hiring a third party to perform certain activities with more efficiency.

The origins of many outsourcing endeavors begin as part of a strategic planning session during a period of lean years for a company or anticipation of a prolonged impending down-cycle. This is a time-period when the organization does not have a viable competitive product to offer in the market or the

Companies are benefiting from outsourcing because it allows them to offer more time with "live" operators ("Call Center Q & A", 2004, p. 32). Customers are seeing increased hours available for help because of the

According to a research, many companies feel that the cons outweigh the pros and that this type of business practice should not be considered anymore. It also can give the persona that a company is trying to cut corners and costs, which in turn, can look cheap. It can take away from the essence of the feel of a company. People want the special touch and do not want to be another face in the crowd. Outsourcing adds more distance between the guest and the