Advantages Of Outsourcing Analysis Essay Example
Advantages Of Outsourcing Analysis Essay Example

Advantages Of Outsourcing Analysis Essay Example

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  • Pages: 2 (448 words)
  • Published: December 31, 2016
  • Type: Essay
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Outsourcing is the act of hiring external parties for business functions when a company lacks expertise or skills. It began with large manufacturing firms contracting specialized component production, such as automakers employing external companies for items like air conditioning units and radio systems. Outsourcing provides the advantage of cost-effective labor.

Outsourcing allows companies to save money by getting work done at a lower cost compared to local expenses. The wage and standard of living difference between Asian and Western countries enables companies to pay less while maintaining or improving product quality. For example, Foxconn, the manufacturer of Apple's products, pays employees approximately 51 cents per hour, which is higher than what other companies usually offer. If the iPad were produced in the US at an average rate of $15.7/hour, it would be priced exorbitantly at $14,970 - c

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learly not feasible. Thus, outsourcing greatly impacts our products. The reduced labor costs free up funds for organizations or companies to invest in other ventures or make overall improvements. Additionally, outsourcing to countries like India can lead to lower overhead costs as there is no need to rent or buy storage warehouses in the US.

Outsourcing offers companies the advantage of concentrating on their main tasks and saving time, which enhances the core of their business. Moreover, outsourcing enables businesses to benefit from efficiency and expertise by utilizing specialized vendors with specific equipment and technical knowledge. As a result, this leads to smooth integration and increased customer satisfaction.

Although there are arguments that outsourcing is taking away jobs from the United States, it also provides employment opportunities in developing countries. These nations often

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suffer from extreme poverty and require job creation to support families and provide education for children. Outsourcing has the potential to help these countries build strong economies. When more people find work, their disposable income rises, benefiting local markets. In conclusion, when used properly, outsourcing can be a valuable tool. However, some companies exploit their influence overseas by paying low wages to impoverished workers, which damages the reputation of outsourcing.

From my perspective, the growth of the global economy plays a vital role in facilitating the advancement of developing nations. By delegating work to these countries, we contribute to their progress and consequently enhance the well-being of families as well as promote better education for children. Moreover, expanding operations overseas enables organizations to achieve significant cost savings; for example, companies can reduce expenses by up to 60% through outsourcing. This provides advantageous opportunities for businesses regardless of their size. Nevertheless, it is imperative that organizations take into account the impact they have on both their foreign employees and the environment. Regrettably, many companies disregard these factors and consequently tarnish their reputation.

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