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Evaluate pros and cons for outsourcing
Evaluate pros and cons for outsourcing
Advantages and disadvantages of global outsourcing
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Introduction
Outsourcing can be defined as a contract service agreement in which an organization hires out all or part of its company responsibilities to an external company.
More and more companies are leaning towards outsourcing it could be said that this may be caused by the growing complexity of Companies and the changing business needs of an organization. As a result, an organization may find that it is not possible to have all its company services supplied from within its own company. Given this, a Company may decide to choose to seek assistance from an external contractor/company to supply their services the organization lacks. In addition, the business competition has set the pace for an organization to continue to strive for internal efficiency. It also needs to look for a way to transfer non-core activities or "in house" services and support activities to external specialist organizations who can deliver quality services at a lower cost.
Fundamentals
In deciding whether to use outsourcing or not, the main objective of outsourcing is based on the price of delivery of services by an external contractor/company. Although price of delivery is a primary factor for outsourcing, other issues should be considered e.g. price should be measured against the overall package offered by the external contractor/company. Briefly if it's a good competitive price in relation to the services rendered by the company and in respect to their skills/competency and experience, and timely delivery. The organization also needs to consider outsourcing in light of its long term strategic directions and its information needs.
Competition is another area to be carefully considered. Competition opens up opportunity for all potential suppliers to conduct business with the organization. Through the competitive process, it allows organizations/Companies to derive the best outcome. From the open and effective competition, the organization is then able to judge soundly in determining the best strategy after it has taken into account of the competition and value for money principle.
...over the inconsistent conflict concerning the Fourteenth Amendment, Lucretia joined with Anthony and Stanton to form the “National Woman Suffrage Association”, devoted to creating a federal amendment granting women the vote. Lucretia and her husband wanted to open a Quaker institution of higher learning. It was named Swarthmore College. When the college had been chartered in 1864, she and James had insisted it be coeducational.For years she was vice president of the Universal Peace Union. In 1870 she was elected president of the Pennsylvania Peace Society, an office she held until her death. Mott grew to believe that a new spirit was at work in the world that demanded active involvement in reform
Recently outsourcing has been in the news, especially during political election years. It seems to be a phenomenon that is causing much concern among the population. But exactly how is outsourcing effecting both workers and businesses? And is it as big of a problem as politicians describe?
'Outsourcing Definition | Small Business Encyclopedia'. Entrepreneur. Last modified 2014. Accessed April 19, 2014. http://www.entrepreneur.com/encyclopedia/outsourcing.
Outsourcing is a complicated and a multifaceted subject that involves a “business[’s] purchase of parts or labor from another company rather than maintaining a sufficient enough number of its own employees to do the same work in the country where the company is already based” ("Outsourcing"). The first practice of outsourcing was in medieval times when “nation-states called in soldiers-for-hire to help their own military forces during ongoing conflicts” ("Outsourcing"). Many think of outsourcing as a one way trade of production facilities moving outside of a companies locale but in actuality it is a two way trade that also involves companies from other areas moving their factories to local areas where conditions are beneficial for the specific business. Outsourcing has evolved but the main idea has remained the same. The recent increase in outsourcing “was initiated by Wall Street pressures on corporations . . . . for increased profits . . . in the production of goods and services marketed in the U.S."(Roberts).
Around this time, Mott really started focusing on trying to abolish slavery and helped found the Philadelphia Female Anti-Slavery Society. She also began focusing on gender equality during this period. In 1837 she attended the First Anti-Slavery Convention of American Women, held in New York and devoted her speeches to the causes of feminism and anti slavery. Mott received a lot of criticism and was threatened often with physical violence due to her radical views. (history.com)After the convention, Mott and Elizabeth Cady Stanton, another women’s rights activist called a meeting to advocate the rights of women. They advocated that women get equal pay as men for doing the same type of work and also thought women should get an education too. Eight years after the first convention Mott and Stanton held their own convention in Seneca Falls, New York to try and “revise the U.S. Declaration of Independence, titled the Declaration of Sentiments, which borrowed heavily from the stirring language and demands for rightful equality of the original: We hold these truths to be self-evident: That all men and women are created equal.” (anb.org)Another part of Mott’s efforts for equality included voting rights. Susan B Anthony, Elizabeth Cady Stanton and Mott came together to form the National Woman Suffrage Association, which was devoted to creating a federal amendment granting women the right to vote. James and Lucretia
The exporting of American jobs is an issue that is important and will become increasingly so as more and more white collar jobs are shipped overseas. American companies in the past few decades have been sending American jobs overseas paying residents of other countries pennies on the dollar what they had paid American workers to do. This saves the companies millions of dollars on labor costs but costs Americans precious jobs.
The Abolitionist Movement transformed the role of women in American History. Prior to the abolitionist movement, women were viewed as invisible icons in society. A typical woman would only be responsible for motherhood duties, cleaning, and preparing food. While many women agreed with this, others did not. The desire to be heard and treated equally was something numerous women shared. Astonishing women like, Sojourner Truth, Elizabeth Cady Stanton, and Grimke sisters became prominent leaders in the abolitionist movement and made a pathway in history by initiating speeches, participating in female politics and supporting their personal opinions of women’s rights through religious doctrines.
Globalization, or outsourcing, has been a hindrance on the American economy for the better part of twenty years. Outsourcing has cost millions of jobs in the United States over the past twenty years, and continues to create problems for the families in the United States. Outsourcing is a hindrance on the American economy, and will create a lasting effect on the college graduates and younger children of today. While outsourcing is bad for the American economy, it has been a growth factor for the economies of the countries such as India. However, India has a social caste system. The caste system determines what social class one is born into, and that person has to stay in that social class for their entire life. Therefore, the economy of that country would be better, but it would only help the rich get richer and politicians have a stronger effect on the poorer classes.
Outsourcing, the practice of transferring certain job functions to companies whose employees perform them for less money overseas, is not something that only happens in the corporate world. Following in the footsteps of corporate outsourcing, some state governments, including the state of California, are also beginning to outsource state-funded projects, departments, and services.
As esteemed journalist Tom Piatak wisely puts it, “The trickle of outsourcing threatens to become a flood.” His words speak the truth as outsourcing has left United States’ workers jobless, and it continues to increase the unemployment rate every year. During February of 2009, American workers lost a record 651,000 jobs alone, increasing the unemployment rate to 8.1 percent, the highest it has been in 25 years (Katel). Multinational corporations, hoping to cut down costs and stay profitable in the market, outsource by exporting American jobs to third-world countries such as China and India. It may seem noble that outsourcing provides third-world countries with job opportunities, but the United States’ markets and industries are greatly affected. Outsourcing is harmful to the United States’ economy because it paves the way for job losses, decreases product consumption, and widens the gap between the rich and the poor.
On May 16th, 1838, Lucretia Mott held the second Anti-Slavery Convention of American Women. The women of this convention were fighting to end slavery in Washington, D.C. and also wanted to boycott goods created by slave labor. During the women’s protest, they approached a riot. The crowd of 17,000 people that they were facing explained that if the blacks were freed there would be fewer jobs for everyone else in the state. It would also bring wages down even more from what they were already at. During this time period, majority of the people were factory workers who feared losing their jobs. They believed that African Americans were not worth losing their jobs over, so they wanted them to be kept as slaves. However, Lucretia did not feel as though this was right. She believed that they deserve to be able to work and be free just as much as everyone else in the community. The mob of people threated the women that were included in the convention with violence, and Lucretia was not going to stand for that. Each white woman linked arms with an African American woman and walked out of the building. After walking out of the building, the doors were locked...
Outsourcing is a technique for companies to reassign specific responsibilities to external entities. There are several motivations for outsourcing including organizational, improvement, cost, and revenue advantages (Ghodeswar & Vaidyanathan, 2008).
...urcing services, the company operation will be became a mess. This is because one organization can’t run a lot of task or project at one time. Therefore an organization need outsourcing in the way to help their organization run smoothly.
...can be key in improving customer sales. If a customer does not see the value of an organization's product, that customer may begin to shop for a competitor's product based only on price. Price is not the only competitive advantage an organization may have, but if it is not able to articulate the non-price value, it can significantly lower the organization's competitive advantage.
...ompletes an analytical assessment of a firm. A firm establishes its competitive building by investing scarce resources again and again in its value-added activities. By doing this the organizations will be able to give rise superior products and services that the buyer's desire and continue to grow the business and adhere to its strategic plan once implemented.