Is Outsourcing Good for America?
Outsourcing has been practice for decades, it happens when companies or business contract a third party, someone outside the business, to produce goods or provide services. Outsourcing can be local, within the same country or offshore, outside the country. Some of the job areas companies outsource are Accounting, Customer Services, Human Resources, Information and Technology and Payroll. Outsourcing supporters affirm that this activity provides substantial cost savings to businesses, through paying less to others do their job, at the same time they can lower prices of goods and services. Although outsourcing brings benefits to a company, this activity may limit the quality of products and the availability of jobs in America. One of the major issues with outsourcing is security. Sensitive information has to be given or transmitted to the outsourced organization which opens the chance that the information can be hacked or stolen during the process. Likewise, confidential information, like social security numbers, bank accounts, security codes, salaries, medical records, could be susceptible to misuse or inappropriate disclosure. Third parties, who have access to such information, may not have the same ethical standards as American workers, putting at risk the privacy of clients. A former Chase call center rep tells the story about this one thief who was able to rip off one customer for over $40,000, thanks to his constant outwitting out the internationally out-sourced security department. It wasn't that hard. Over and over again, he was able to commit credit card fraud just knowing the guy's name, social, and mother's maiden name. Outsourcing can also impact dramatically the safety and quality of products and services. Some companies do not properly evaluate the levels of risks associated with outsourcing and the impact to consumers. In 2007, millions of toys made in China were recalled because they contained lead paint. The...
Please join StudyMode to read the full document