Outsourcing in Today's World

2266 Words5 Pages

Outsourcing in Today's World

Outsourcing has become an increasingly popular alternative to today’s high costs in business and manufacturing. It largely affects today’s market from a buyer’s perspective, as well as employee perspective. Manufacturers have turned to outsourcing to be more competitive by lowering overall costs. This may include turning over a segment of your business to another company, or by simply duplicating your operations of manufacturing in a different country. Regardless of how it’s done, outsourcing is an ongoing debate between American workers, and bloodthirsty businesses in a ferociously competitive world.

Outsourcing is the process of subcontracting operations and support to an organization outside the company to replace performance of the task with an organization’s internal operations. (www.hjventure.com) Simply stated, outsourcing takes place when an organization transfers the ownership of a business process to a supplier. What makes this process so important is the fact that no matter what the product, there is a continuing effort to ship it outside of America to make it cheaper. This is the number one single reason for outsourcing, reducing or at least, control operating costs. It has been reported that on average, companies have seen approximately a 40% reduction in costs through outsourcing. (www.intozone.com) Because of this large reduction, it makes it almost impossible for similar companies to stay competitive unless they to begin to outsource.

There are several reasons as to why outsourcing occurs. The first and most basic reason is costs of wages. American tech workers can average $9.00 an hour and up, where labor overseas can reach as low as pennies per hour. Corpo...

... middle of paper ...

...le. If people begin to realize that a little more money spent up front can save money on unemployment taxes, crime, etc. then maybe this world could be a better place. Hopefully, businesses would gain a better sense of the word value, and have less interest in the word profit. This was a very interesting subject, and I hope that over the next few years outsourcing evolves into making the entire world a better place, rather than just increasing large business profits.

BIBLIOGRAPHY

1. http://www.intozone.com/whyoutdef.htm

2. http://www.nwfusion.com/news/2003/0623offshore.html

3. http://www.hyperdictionary.com

4. http://www.outsourcingsurvival.com/

5. http://www.compstartech.com/gatesoutsrc.htm

6. http://www.wistechnology.com

7. http://searchwebservices.techtarget.com

8. http://www.outsourcing-faq.com/1html

9. http://www.eweek.com

Open Document