Managerial Accounting
Benedictine University
MBA 601
Managerial Accounting
Final Project (paper)
Outsourcing
In today’s business environment, outsourcing becomes more and more popular and important for all kind of companies because more and more companies realized the benefits of outsourcing. Outsourcing is the process by which the company contracts to another one to supply some goods and services. Outsourcing is not only used in the domestic business, but also used in the international business that is the offshoring. Different people have different opinions about the outsourcing because the outsourcing have some potential benefits, but also have some potential drawbacks.
First, we should understand who is engaging in outsourcing. Basically, any types of companies, most of them are big businesses, but even some small firms also engage in outsourcing. Jamee (n.d.) explained in his article, “Even small businesses have already engaged in outsourcing to avail of the benefits that the industry has to offer.” The outsourcing becomes more and more popular because there are benefits for businesses, which can save time, money, and so on. According to Jamee’s article (n.d.), “Outsourcing has been considered as a staple in the market since most businesses now have realized that entering a partnership with a process outsourcing company has an extensive range of benefits attached to it.” So that is why there are many companies engaging in outsourcing now.
Just like I mentioned, some companies also outsource their goods or services to other counties. This is the offshoring. The Sourcingmag (n.d.) in their website explained, “Offshoring is a type of outsourcing. Offshoring simply means having the outsourced business functions done in another country.” There are huge benefits of offshoring, but also there are the political ramifications of offshoring. Some economists argue that the frequent of offshoring serious hurt America economy because many companies outsource their operations to
MBA 601
Managerial Accounting
Final Project (paper)
Outsourcing
In today’s business environment, outsourcing becomes more and more popular and important for all kind of companies because more and more companies realized the benefits of outsourcing. Outsourcing is the process by which the company contracts to another one to supply some goods and services. Outsourcing is not only used in the domestic business, but also used in the international business that is the offshoring. Different people have different opinions about the outsourcing because the outsourcing have some potential benefits, but also have some potential drawbacks.
First, we should understand who is engaging in outsourcing. Basically, any types of companies, most of them are big businesses, but even some small firms also engage in outsourcing. Jamee (n.d.) explained in his article, “Even small businesses have already engaged in outsourcing to avail of the benefits that the industry has to offer.” The outsourcing becomes more and more popular because there are benefits for businesses, which can save time, money, and so on. According to Jamee’s article (n.d.), “Outsourcing has been considered as a staple in the market since most businesses now have realized that entering a partnership with a process outsourcing company has an extensive range of benefits attached to it.” So that is why there are many companies engaging in outsourcing now.
Just like I mentioned, some companies also outsource their goods or services to other counties. This is the offshoring. The Sourcingmag (n.d.) in their website explained, “Offshoring is a type of outsourcing. Offshoring simply means having the outsourced business functions done in another country.” There are huge benefits of offshoring, but also there are the political ramifications of offshoring. Some economists argue that the frequent of offshoring serious hurt America economy because many companies outsource their operations to
References: Adelaide A. Odoteye. (Fall, 2006). Nike, Inc. Case Study. pp. 09-16. Retrieved February 05, 2013 from EBSCOhost database. Greenhouse S. (1997) Nike Shoe Plant in Vietnam Is Called Unsafe for Workers. Retrieved February 05, 2013 from http://www.nytimes.com/1997/11/08/business/nike-shoe-plant-in-vietnam-is-called-unsafe-for-workers.html?pagewanted=all&src=pm Jamee C James Bucki. (n.d.). Top 6 Outsourcing Disadvantages. Retrieved February 05, 2013, from http://operationstech.about.com/od/outsourcing/tp/OutSrcDisadv.htm Michael Mandel Rajiv Varshney, Praveen Gupta. (Sep. 2002). Road to Growth and Profitability Starts with Effective Supplier Relationship Management.P.02 Retrieved February 05, 2013 from EBSCOhost database. Robin McDaniel. (n.d.). The Advantages of Outsourcing for Nike. Retrieved February 05, 2013, from http://www.ehow.com/list_7704795_advantages-outsourcing-nike.html Rose India Scott Hebert. (Sep. 11th, 2008 ). Nike’s Environmental Record. Retrieved February 05, 2013 from http://www.heberts.net/nike%E2%80%99s-environmental-record/ Sourcingmag Stanford University, Graduate School of Business. (Feb. 2000). NIKE – Channel Conflict. p. 02. Retrieved February 05, 2012 from EBSCOhost database. Wilsey M. & Lichtig S. (n.d.). The Nike Controversy. Retrieved February 05, 2013, from http://www.stanford.edu/class/e297c/trade_environment/wheeling/hnike.html