Outsourcing Case Study
analytical Essay
1031 words
Outsourcing has been a topic of much discussion for decades among scholars, business people and employees who work for companies that often outsource many of their daily functions. Outsourcing takes away jobs from employees and leaves the impression that the company is greedy by trying to save money instead of keeping the jobs within the organization. When did outsourcing develop into the thing to do in organizations? Outsourcing started in the early 1970’s as a business strategy that allowed companies to focus on their core competencies while other functions are handled by providers with expertise (Davis & Davis, 2012).
ADP for example, offered payroll services to organizations in the 1950’s; today they are one of the largest payroll providers in the world (Davis & Davis, 2012). Another form of outsourcing is onshoring, an organization outsources work to a service provider in the same country in which it operates (Davis & Davis, 2012). Furthermore, offshoring is where work is outsourced to a provider in another country (Davis & Davis, 2012). Several small and large
…show more content…
In this essay, the author
- Explains that outsourcing has been a topic of much discussion for decades among scholars, business people and employees who work for companies that often outsource many of their daily functions.
- Explains that adp is one of the largest payroll providers in the world. onshoring is where work is outsourced to a provider in another country.
- Explains that 78% of mid-market companies and 79% of enterprise companies state that this is the primary reason for outsourcing. enterprise companies are more likely to use outsourcing to make global operations more effective.
- Argues that outsourcing functions to third parties is cheaper than hiring employees with specialized skills. outsourcing allows companies to focus on core business functions and allow for greater competition in their market.
- Explains outsourcing as a viable business strategy that results in higher level of quality and efficiency of operations.
- Explains how outsourcing can be perceived as a negative strategy to employees. outsourced occupations decrease employee’s job satisfaction and job security.
- Opines that organizations should take into account the reliability and security of their functional activities. outsourced work can cause a reduction in workforce and limit the opportunity for advancement for employees.
Combining certain functions and contracting them out to service providers can be cheaper than hiring employees that have specialized skills to perform those functions for the organization (Caruth, Pane, S., & Caruth, 2013). Services provided by outsourcing firms are provided by professionals with experience, therefore they can perform certain function more effectively than the organization (Caruth, Pane, S., & Caruth, 2013). Outsourcing allows companies to focus on their core business functions and allow for greater competition in their market (Habul & Pilav-Velic, 2010). Furthermore, organizations that outsource recruiting functions for example, with a well-known provider has the ability to attract quality employees with the desired knowledge and skills they are looking for (Wehner, Giardini, & Kabast,
Related
- analytical
- opinion
- explanatory
- Exploring the Benefits of Outsourcinganalytical essayThe purview of this paper is designed to encompass the outsourcing of jobs in the manufacturing sector of the United States' economy. Beneficial and disadvantageous elements of globalization will be exposed within the respective boundaries inclusive to the outsourcing of U.S. industry jobs.
In this essay, the author
- Analyzes the benefits and disadvantages of outsourcing jobs in the manufacturing sector of the united states' economy.
- Argues that outsourcing is a highly polarizing and multifaceted issue for corporate entities and u.s. citizens alike.
- Explains buchholz's bringing the jobs home: how the left created the outsourcing crisis—and how we can fix it.
- Cites griswold, daniel t., and buss, dale. "economic benefits from foreign outsourcing."
2227 wordsRead More - Outsourcing IT Jobs: Pros And Consanalytical essayOutsourcing can help a company operate in an increasingly competitive global marketplace. Outsourcing can enable a business to provide 24/7 coverage, especially for consumers who need around-the-clock support (Weidenbaum). In the next several paragraphs, I will discuss from a microeconomic level the actions that my employer implemented to take advantage of globalizing the work force to reduce costs, the issues my organization is facing with offshore efforts on the other hand, and then the cost associated with this trend towards macroeconomic wi...
In this essay, the author
- Explains that outsourcing of it jobs has become a controversial national issue due to its complicated advantages and disadvantages.
- Explains that outsourcing can help a company operate in an increasingly competitive global marketplace. they will discuss their employer's actions to take advantage of globalizing the work force to reduce costs, and the costs associated with this trend towards macroeconomic within the u.s.
- Explains that the worst high tech recession of late 1990s resulted in net losses or barely positive net income. cio's began to send information technology jobs offshore to lower wage-paying countries.
- Explains that moving jobs offshore is a result of external factors, such as the separation of costs and benefits, but many companies saw an opportunity to globalize their work force.
- Explains that u.s. companies search for offshore resources to reduce operational costs, but there are also costs associated at the macroeconomic level within the us.
- Argues that companies should look beyond the short term gains and see that there are lots of costs from a company level to the u.s. macroeconomic perspective.
- Cites goodwin, bill, koch, chris, and weidenbaum, murray.
954 wordsRead More - Labor in the United States and Outsourcingopinion essaySince the concept of outsourcing was introduced it has been a subject of debate between politicians and citizens of the United States. Remarkably, it was the United States who supported outsourcing and now it is the United States that feels its economic progress is being threatened by outsourcing. One may argue that the financial situations that existed two decades earlier are not the same as they are today, thus the change of time, business priorities of economies have also changed.
In this essay, the author
- Explains that outsourcing emerged on the financial arena during the 1980s and has since been spreading. globalization provided a new component leading to the strengthening of resources, skill and labor specializations across the world.
- Explains that the concept of outsourcing has been a subject of debate between politicians and citizens of the united states.
- Explains that businesses have been able to extract a multitude of benefits through outsourcing which has in turn created employment opportunities along with it.
- Explains how alternative organizations began to source their services to countries like asia and china where staggering population makes the provision of low-cost labor more convenient. the native labor developed the best hostility for outsourcing.
- Opines that the controversy that was antecedently being won by the advocates of outsourcing has now taken a totally different twist.
- Opines that america should create intelligent use of scarce natural resources by producing extremely subtle product like airplanes and innovative software system systems instead of concentrating on the production of less advanced shoes and textiles.
- Argues that the benefits registered of outsourcing can become virtually non-existent and negligible once its disadvantages are contemplated.
- Opines that outsourcing will replace jobs lost during a dynamic and innovating economy like that possessed by usa. however, government is framing policies to slash grants being provided to such institutes.
- Argues that the major shortcomings from the projected economic models don't seem to be stuffed with a concrete and effectively managed finances recovery in terms of exploration of novel employment opportunities, stabilization of native market and relief providing efforts to the labor through outsourcing ventures.
- Concludes that outsourcing remains an issue of concern for our government as well as for the people of the united states.
1040 wordsRead More - Outsourcing Essayexplanatory essayNot all outsourcing involves foreign workers or foreign countries. Many people today work as independent contractors providing services to businesses. Outsourcing is a growing popular trend that is not likely to slow down in the near future. No longer are the days when an employee works for ...
In this essay, the author
- Explains outsourcing is an effective cost saving process companies use to ship jobs or services needed by a business to an outside organization or country.
- Explains that in today's economy outsourcing of most business functions is quite common. call centers are working overtime handling companies’ steady stream of clients looking to outsource many of their duties.
- Opines that outsourcing is a growing popular trend that is not likely to slow down in the near future.
- Explains the key factors driving companies to outsource are lack of expertise in a specific area of business process, cheap labor, and favorable financial packages.
- Explains that the number of u.s. jobs that had been offshore outsourced was a little over 2.6 million jobs.
- Explains the top five offshoring outsourcings by sectors: manufacturing, it services, r&d, sales, distribution, and call or help centers.
- Opines that profit driven, lowering operating cost, and gaining access to growing pool of cheap workers appear to be the common theme in outsourcing.
- Explains that about a third of the roughly 31 million u.s. employees of multinational firms work abroad — and growing.
- States that a university of california study concludes that 14 million white-collar jobs are vulnerable to being outsourced offshore. these include call-center operators, customer service, and back-office jobs.
- Explains why outsourcing is like that run-away train building up speed, and how does this phenomenon affect the employee who has been loyal and hard-working?
- Analyzes how outsourcing helps companies streamline overhead costs and maximize profit. outsourcing employee benefits, vacation/sick time, training/support, travel and entertainment expenses, advertising cost, and payroll taxes saves the company money.
1066 wordsRead More - The Impact of Outsourcinganalytical essayOutsourcing has only very recently become an issue in the United States, and as a result it has become a very popular political issue during campaigns for presidency. Outsourcing is the idea that a company will subcontract to a third party, usually outside of the US, for various parts of its business structure. An example of this and perhaps the largest source of outsourcing is call centers for tech support, where a company will subcontract to a third party and that party will build up the call center and hire the workers for it. Many people have been affected by outsourcing since it started being used widely in the 1980s, and most would argue that outsourcing is not a good business model, that while it not only negatively affects them, it affects the whole economy. While there are some unmistakable positives to outsourcing, I would argue that as a whole, the negatives far outweigh the positives and outsourcing is bad for the United States.
In this essay, the author
- Explains that outsourcing improves the quality of a company's product, and the credibility of the company behind that product. this is especially apparent when companies are looking for talent in the sciences or engineering.
- Analyzes the negatives of outsourcing, such as the displacement of workers or the loss of jobs, especially during a recession.
- Opines that outsourcing has a negative impact on the economy, and that governmental restrictions should be put in place to protect workers from being displaced.
- Explains that outsourcing has become a popular political issue during presidential campaigns. they argue that the negatives outweigh the positives and outsourcing is bad for the us.
- Argues that outsourcing results in a loss of skills and quality of product. they also point out the negative impact of outsourcing abroad.
- Analyzes the impact of foreign outsourcing on wage inequality in us manufacturing.
1771 wordsRead More - Outsourcing Information Security Consultantsanalytical essayOutsourcing 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).
In this essay, the author
- Explains that a universal process for selecting partners is to pinpoint the basis for collaborating, determine the criterion for potential partner assessment, evaluate and prioritize potential partners, and select the most suitable match.
- Recommends examining a minimum of four factors that were omitted in the specifications that add value to the selection process.
- Explains that despite the specification centered on the motivations for outsourcing, the process to manage a vendor affiliation must be the chief concern.
- Explains that feeble vendor selection can lead to financial risk, deficient service levels, and undesirable payment conditions. the control objectives for information and related technology (cobit) is a governance model to reduce operational and compliance risk.
- Explains that it governance provides more than just regulatory compliance but assures an organization they are functioning properly.
- Analyzes the literature review to assess various forms of outsourcing, drivers, and processes. the research uncovered that strategic partnerships have a clear lifecycle.
- Explains that outsourcing is a technique for companies to reassign specific responsibilities to external entities. the assignment research objectives were to gain insight into securing strategic partnerships in the it arena.
- Evaluates the specifics of information security consultants to become a strategic partner assisting in the reduction of information or security risks.
1798 wordsRead More - Outsourcing American Jobsexplanatory essayMany people think that outsourcing is jobs that were held in this country going somewhere else. That is not entirely accurate. Outsourcing is actually one company paying another to do some work for it. Outsourcing can be as simple as paying a company to paint your building. Or it can be as complex as paying a company to control your human resources department.
In this essay, the author
- Explains that president bush and the current administration are pushing for more and more government jobs to be outsourced. it is a key candidate for outsourcing.
- Opines that companies going offshore to outsource it need to learn how to talk about this increasingly sensitive subject.
- Explains that outsourcing is an evil act by money-hungry businesses at the expense of american workers. it can be as simple as paying a company to paint your building.
- Explains that outsourcing is a political buzz word in this election year. senator kerry supports tax breaks for companies to keep jobs in the u.s.
1629 wordsRead More - Employee and Labor Relationsexplanatory essayBy definition, “Outsourcing is the process of hiring an external provider to do the work that was previously done internally. Outsourcing has become a widespread and increasingly popular alternative involving virtually every business area” (Mondy, 2012). Many companies are choosing to outsource some of, if not all of their human resource functions due to other companies being able to perform the functions more efficiently and have more knowledge in an area then the company itself. For example, many companies decide to outsource their payroll functions because of some of the different compliance issues for taxes and relieving the accounting department of having to handle withholding deposits and payroll taxes. With many companies facing collective bargaining and labor relation issues, the question that a company must review is ‘how will these issues be handled by human resources if the company outsources that function?’
In this essay, the author
- Explains that the admin center, inc. specializes in the back office support for multiple sales agents nationwide and for other companies with a specialty in energy and green industries.
- Explains why so many small to midsized companies outsource some or all of their human resource functions.
- Explains that outsourcing the company's human resource functions is cheaper than paying salaries of more employees.
- Describes some of the disadvantages a company may face when outsourcing its human resource functions.
- Explains roberts, c., the disadvantages of outsourcing hr functions.
- Explains outsourcing has become a widespread and increasingly popular alternative involving virtually every business area. many companies are choosing to outsource some of their human resource functions due to other companies being able to perform the functions more efficiently.
- Explains that jamie madsen, of better business – 5 human resources functions, discusses payroll, legal compliance, benefits and administration, background checks and drug screenings and workforce analytics.
- Explains that public employee unions and public officials have become alarmed by the use of outsourcing in the 1990s. the admin center, inc. does not outsource this function to the human resource organization.
- Explains the advantages and disadvantages of outsourcing a company's human resource functions to an external company.
- Cites heavrin, m. r., and madsen, j. (2013, april 17). better business – 5 human resources functions to outsource.
1316 wordsRead More - Outsourcing and the US Labor Marketopinion essayIn many cases outsourcing has proven to be beneficial for businesses. It can help a business’s management by allowing executives to focus on the core structure of the firm rather than every specific element. Production, manufacturing, or additional servic...
In this essay, the author
- Explains that businesses in the u.s. make products overseas, using labor services from a third party, despite the profits made from this technique, it can have repercussions on the us economy and the environment.
- Opines that both sides agree that outsourcing can be desirable for a business do to the potential profit. however, u.s. jobs are lost due to outsourcing and corporations taking advantage of loose environmental regulations.
- Explains outsourcing has proven to be beneficial for businesses by allowing executives to focus on the core structure of the firm rather than every specific element. the toy company mattel inc. would serve as an example.
- Explains that countries such as india and china have relaxed labor and environmental laws, which may prove profitable for many businesses.
- Estimates that by 2015, 3.3 million u.s. service and manufacturing jobs will have been shipped overseas.
- Opines that businesses make a questionable risk in trusting suppliers, as they have limited control over the quality of outsourced products and services.
- Explains that some outsourced service workers may have limited international mobility or limited knowledge of customers’ activities. this can cause confusion between suppliers and corporations or services and customers.
- Explains that china's neglect of the environment has taken a toll over the years due to the mass of industries outsourcing to china.
- Opines that there are many prospects to weigh for both sides of the agreement when one questions whether or not u.s. businesses should outsource jobs to other countries.
- Proposes a tax reduction for american businesses that do not outsource labor, which would cut expenses to encourage businesses to keep labor in america while creating jobs and decreasing pollution emitted into china’s ecosystem.
- Cites ahmed, syud amer, thomas w. hertel, and terrie l. walmsley. "outsourcing and the us labour market." world economy 34.2 (2011): 192-222
- Describes brecher, chen, and zhiqi chen's views on unemployment of skilled and unsawed labor in an open economy.
- Explains that u.s. companies paid more taxes overseas. businessweek online (2009): 5.
- Cites marquis, chrisopher, zhang jianjun, and zhou yanhua. "regulatory uncertainty and corporate responses to environmental protection in china."
- Analyzes salanţă, irina, dan c. lungescu, and veronica m. pampa's "outsourcing: the benefits and the risks." managerial challenges of the contemporary society.
- Analyzes how outsourcing critics cite labor laws in other nations.
- Explains wood, joel, the effects of environmental regulation on the competitiveness of us manufacturing. fraser forum (2012): 25.
- Cites zhang, ting, "international outsourcing and unemployment in a minimum-wage economy." business source premier.
1210 wordsRead More - Outsourcing as a factor in the United States recessionanalytical essayOutsourcing 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).
In this essay, the author
- Argues that u.s. lawmakers need to be more welcoming to large international businesses that will help to restart the job market, but instead focus on small start-up businesses.
- Analyzes how the unbalanced nature of outsourcing has caused a lessening of jobs and the loss of necessary revenue that the u.s. desperately needed.
- Analyzes the issue issues in science and technology 26.3 (2010): 91+.
- Analyzes the opposing viewpoints in context from "obama's high-tech labor lies."
- Explains that outsourcing is a complex and multifaceted subject that involves companies purchasing parts or labor from another company rather than maintaining fewer employees.
660 wordsRead More