Outsourcing

1522 Words7 Pages
Outsourcing Thesis: How outsourcing jobs has affected IBM’s Human Resource Management Department I. What is outsourcing A. Factory work to outside contractors B. Management responsibilities C. Human Resource Management duties II. Why use outsourcing A. Reduction in labor force B. Saving’s factor C. Technological advantages D. Increase customer satisfaction III. Winners A. Stockholders B. CEO’s C. Clients D. Outside contractors IV. Losers A. Local employees I. Families B. The community Conclusion - - Outsourcing is not the solution for all of corporate America, but for IBM it is the only profitable way to operate. Outsourcing, this is a term that is heard more and more in corporate America. Outsourcing refers to the practice of having another company (a vendor, third-party provider, or consultant) provide services (Noe et al. 49). Often times, companies can utilize a tremendous amount of additional resources by outsourcing key components of their work force. Practically all areas of business are subject to outsourcing. Today, it is possible to start up an entire company with only a computer. As Americans, we expect the best possible value for our dollar. Often times the pennies we save cost us a lot more in the long run. Because some companies have taken advantage of outsourcing their competitors have to do the same to compete. The most common form of outsourcing is that of the factory worker. America has lost a countless number of jobs to lower wage workers at home and abroad. The American textile industry has practically been wiped out by outsourcing. The vast majority of textiles are now being produced outside of our borders. Auto workers are now faced with the same problem due to the cheap influx of Asian imports. Management is not immune from outsourcing as it once was. Several leading companies have turned to private firms for help in managerial situations. Later on in this paper I will give an example of this new wave of outsourcing. Today they are called private consultants. More and more firms are relying on these private consultants for help in making key business decisions. As the business world looks to squeeze more pennies out of the dollar this practice will increase. Management staff is freed up to handle other duties. Huma... ... middle of paper ... ...nce Smithfield’s largest employer, with over 1600 jobs (Parker). Fortunately, these lost jobs will not have a long lasting effect on the community. Several new facilities are opening, creating approximately 900 jobs. “We are fortunately creating more jobs than we are losing,” de Sherben said (Parker). Outsourcing is not the answer for all the problems associated with business today, but for some it is the only way out. IBM got excellent results from outsourcing their HRM department. I have a first hand account of outsourcing failing. My wife Paula worked at Burlington Industries for 10 years, only to be laid off. Burlington moved their drapery plant to Mexico. In just a few short years, Burlington was out of the drapery business. It is a gamble worthy of Las Vegas odds. Works Cited Locker, Kitty O., Business and Administrative Communication. New York: Mcgraw- Hill/Irwin, 2003. Noe, Raymon A., et al. fundamentals of human Resource Management. New York: McGraw-Hill/Irwin, 2004. Parker, Vicki L. "Dish maker to cut jobs." The News & Observer 6 May 2005: D1+. Gurchiek, Kathy. Record growth seen in outsourcing of HR functions. 2005. 20 Apr. 2005
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