Why America Should Not Practice Offshore Outsourcing

Only available on StudyMode
  • Topic: Outsourcing, Offshoring, Offshoring Research Network
  • Pages : 4 (1620 words )
  • Download(s) : 144
  • Published : February 18, 2006
Open Document
Text Preview
Outsourcing; what does this term mean? "Outsourcing is the practice in which companies move or contract some or all of their manufacturing or service operations to other companies that specialize in those operations of to companies in other countries…When outsourcing involves the movement or contracting of those operations to foreign countries, it is properly called offshoring or offshore outsourcing." (Outsourcing, 2005). What does this mean to you? Many American jobs are now being sent to the overseas market. Jobs from many aspects such as blue jean manufactures, shoe manufacturers, software companies, and telemarketing jobs have moved overseas (Outsourcing, 2005). Why should we not outsource? Outsourcing jobs has many disadvantages; it can cause poor customer service, it creates a complex infrastructure, it has hidden costs, and it can cause a loss of jobs in America. Customer Complaints and Communication Problems

Many companies are now unsure of offshoring due to numerous customer complaints regarding the quality of service and communication problems (Bednarz, 2004, p. 33). Many companies moved software development to foreign countries with the false pretense that they would get better quality. Many times, this is not the case. Many of the quality ratings were based upon only a portion of their development process and not the final product (Vogel & Connelly, 2005, p. 3). Some companies have begun to break contracts with their offshore partners prematurely due to lack of delivery. "The provider (offshore contractor) had financial difficulties…failed to deliver on commitments" (Bednarz, 2004, p.33). Many of the companies had poor turn around time on their commitments. Also, some of the lack of quality in products is a direct result from the language barrier. "In India, (telephone) customer service usually pretty good --the reps are very nice to callers. The problem is, they often cannot resolve the call…higher percentage of calls are escalated to the...
tracking img