Essay on The Pros and Cons of Outsourcing

Essay on The Pros and Cons of Outsourcing

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Introduction

This paper is a general overview of outsourcing. It explores when to outsource and what advantages and disadvantages a public manager may face when deciding whether to outsource.

I have chosen references to support this text that are both academic and colloquial. Indeed it was a discovery to learn that "Outsourcing" had become a well-developed academic area of study. My prior study of the subject revolved around personal conversations and non-academic magazine articles.

It may be interesting to note that an internet search using key words, "privatization + government" in both Yahoo and Dogpile failed to bring up a specific government agency devoted to outsourcing or privatization. In the private sector there were many web sites particularly devoted to this topic. One of the most developed was at: http://www.outsourcing-research.com. The lack of existence of a central public agency specifically designed to deal with this issue may be a result of a failure to fully recognize this as an aspect of modern government activity.

Definitions
"Outsourcing," "privatization," and "contracting out" have a similar meaning. "Outsourcing" may be defined as: [The process by which] "an organization turns over the complete ownership and control of a particular business process or function to the supplier. The buyer determines what results it wants from the supplier, and the supplier determines how to achieve the results." 1

In this sense, "outsourcing" may be synonymous with "privatization" because it implies the turnover of "ownership and control" from one organization to another. "Contracting out" may be a subcategory of outsourcing/privatization. As one reference2 puts it, "Contracting Out" [is] the most common form...


... middle of paper ...


...ce Delivery- Examples of Innovative Practices. The Urban Institute Press, Washington D.C., 1989.
7. Suggs, R.E. Minorities and Privatization: Economic Mobility at Risk. Joint Center for Political Studies Press, Washington D.C., 1989.
8. Rehfuss, J.A. Contracting Out in Government: A Guide to Working with Outside Contractors to Supply Public Services. Jossey-Bass Publishers, 1989
9. Cavendish, A, Mistry P. Adjusting Privatization. Heinemann Educational Books, 1992.
10. Ventura, Jesse. I Ain't Got Time to Bleed - Reworking the Body Politic from the Bottom Up. Villard Press, 1999
11. http://house.gov/judiciary/6096.htm. Testimony of Norman Matloff, Dept of Computer Science, UC Davis to the House Judiciary Committee, subcommittee on immigration "Debunking the Myth of Desperate Software Labor Shortage.
12. http://www.outsourcing-academics.com/html/acad12.html


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