Preview

Is Oversees Outsourcing A Good U.S. Business Strategy?

Satisfactory Essays
Open Document
Open Document
365 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Is Oversees Outsourcing A Good U.S. Business Strategy?
Is Oversees Outsourcing A Good U.S. Business Strategy?

In order to give an answer to this week journal question, first I would like to define what outsourcing really is. According to the business dictionary, outsourcing is contracting or subcontracting of noncore activities to free up cash, personnel, time, and facilities for activities in which a company holds competitive advantage.
Based on this definition, now we can concentrate on answering the question either it is good or bad business strategy for the U.S.. In my opinion any action, which reduce costs and improve provided services should be considered as a positive actions and good move of the management staff.
As it is stated in our book, outsourcing contributes to enhancing competitive business advantage as it allows organizations to remain focused on their core strategic activities. Instead of spending a lot of company’s money on learning, developing and producing some of the parts or whole products in the United States, organizations have a great opportunity to outsource it and concentrate on something what they are good at. They would not have to devote their time to all these elements of production, and instead they could work on their other important issues.
When it comes to international outsourcing of employment, it can be a cost efficient alternative for many organizations. It allows companies to cut their expenses, increase their profits, lower prices, as well as it helps to improve company’s economic situation.

There are many skeptics of outsourcing as a company’s business strategy. Some people think that everything should stay in the U.S.. They think that by outsourcing jobs oversees we are loosing jobs, giving them to other people in different countries, rather than to leave jobs in the United States. Probably they are right in some part of what they are saying, but in my opinion, outsourcing has to occur if we want to go forward. We should choose the option, which would give us

You May Also Find These Documents Helpful

  • Powerful Essays

    Tegan Hrad Write Up

    • 3041 Words
    • 13 Pages

    Outsourcing has seemed to acquire a rise in popularity and usage in our modern times. Outsourcing involves entering into a contract in which an in-house company process, or processes, is ultimately handed over and dealt with from a third party’s perspective. I would have to say that there are three primary, helpful factors to outsourcing, especially when it comes to the world of business. To start off, the cost of operations can be trimmed down through outsourcing. This, in turn, would assist a corporation or business in accumulating more lucrativeness. Secondly, every organization out there has the intention of delivering top-of-the-line services and goods. Outsourcing can contribute to more efficient deliveries. Specifically concerning information technology or something that would be considered to be a bit more technical, outsourcing can bolster efficiency within that particular field of a technical nature. Thus, productivity would be improved through outsourcing. Thirdly and lastly, within a set interval of time, an establishment has the ability through outsourcing to complete projects promptly. This is due to the fact that while a third party is handling a certain progression of a certain company, that individual company can now use its human capital and employees – that may originally were going to have to deal with a peculiar development stage of a certain project which has now been outsourced – in other, more beneficial ways. More labor can be put into other areas.…

    • 3041 Words
    • 13 Pages
    Powerful Essays
  • Good Essays

    While outsourcing may be beneficial to some of the companies partaking in it, the general consensus is that it ultimately proves to be harmful to the American workforce. The act of outsourcing and shifting many company call centers and technical support teams, or “low skill service jobs,” to foreign countries reduces jobs for those that could truly benefit from them within our own country. The unemployment rate has dramatically increased, and continues to rise, compared to what it has been in years past; yet there are numerous companies which still insist on handing over these “low skill service jobs” to people in other countries such as India. The most obvious and logical reason for outsourcing is reducing costs; people are working for a smaller fraction of the pay compared to that of their American counterparts. Outsourcing is used by many companies both in and out of the United States; it has proven to be beneficial to the companies that choose to partake in it, while other companies do just fine without outsourcing.…

    • 1938 Words
    • 8 Pages
    Good Essays
  • Better Essays

    Outsourcing provides an increase in operating efficiency, higher return on assets, and increase in profits. Outsourcing can provide new revenue streams with fewer risk and lower collateral investment (Gnusche, Wallace, Wilson, Smith, 2004).…

    • 2422 Words
    • 10 Pages
    Better Essays
  • Good Essays

    With outsourcing comes many pros, or advantages. Outsourcing is very popular in our country and internationally. It helps businesses focus on their priorities or their main functions instead of secondary tasks. For example, if a company was good in handling finances, it would be hired to handle only the finances. Outsourcing also reduces expenses by finding certain industries purposes in areas where important costs are cheaper. If you noticed, many of our clothes or shoes are made in China. This is an example of outsourcing but it is a certain type…

    • 625 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Clott, C.B.. (2004). Perspectives on Global Outsourcing and the Changing Nature of Work. [Electronic version]. Business And Society Review New York, 109(2), 153-170.…

    • 4024 Words
    • 17 Pages
    Powerful Essays
  • Good Essays

    Outsourcing in America

    • 1347 Words
    • 4 Pages

    Outsourcing is weakening the nation’s job-creation engine, and leaving thousands of newly unemployed workers here in the United States in search of work. With the number of companies outsourcing jobs continually increasing, it becomes a much larger issue for the U.S. workforce to find a job when so many are being outsourced overseas. Unfortunately this trend is likely to continue to cause serious harm in the United States if it continues to go unmonitored. Foreign and American governments have contributed to the problems caused by outsourcing in a number of ways. Some of the more visible ways are a lack of monitoring and data gathering, ceasing to enforce any pressure or penalties upon companies outsourcing jobs, and U.S. jobs being outsourced due to foreign incentives. These three issues are a large contributing factor to the current problem of outsourcing in the United States and its negative impact on the American workforce.…

    • 1347 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Firms compete to achieve higher profits and gain competitive advantages. Over years, various policies and procedures to achieve the competitive advantage, higher profit goal have been designed and followed up by firms. In the recent few years, outsourcing emerges as a popular new policy to achieving these goals. This research introduces the outsourcing concepts, reasons and factors affecting the outsourcing decisions as were found in a wide…

    • 6990 Words
    • 28 Pages
    Powerful Essays
  • Powerful Essays

    Rapidly changing market dynamics and global competitive pressures have caused organizations to spend more time focusing on their core business. Organizations are fast realizing that they can 't be all things to all people. So companies now, be it a software company, a service provider or a manufacturing firm, decide what they are good at and outsource everything else, i.e., focus on their core competency, and let someone else do the rest in a more efficient and cost-effective manner. The organization can focus on higher value-added activities while the outsourcing provider takes care of the day-to-day administration. Critical internal resources, such as technology and talent, can be devoted to company 's core business. Outsourcing reduces the need for large capital expenditures in noncore functions. Thus, outsourcing becomes a strategy for reducing the capital intensity of the business. This strategy has gained popularity as companies aim to become more nimble and gain the speed and flexibility necessary to compete in today 's business environment. A growing number of executives understand the benefits it can bring in terms of not only cost savings, but also heightened strategic focus. Many recognize outsourcing relationships as long-term partnerships created to further the strategic goals of the organization. As a result, human resources outsourcing is becoming increasingly prevalent. Outsourcing noncore activities…

    • 1768 Words
    • 51 Pages
    Powerful Essays
  • Good Essays

    In a world of globalization, U.S. companies are constantly seeking strategies to become more competitive. Important objectives of the strategic response have been to reduce costs, stay ahead of competition, and enhance profits. Outsourcing has become a main cost-cutting strategy in the twenty-first century. It occurs when a company moves work out of the enterprise. A special report in the Canadian Business Review magazine refers to outsourcing as a strategic tool. The author, Michael F. Corbett, states that in the 1920s and 1930s, the model hat has shaped our thinking about organization has been that of a large, integrated corporation that own, manage, and directly control most or all of its assets and resources. However, today's organizations are increasingly turning to outsourcing and changing the way they do business. As a result, outsourcing becomes a tool that challenges managers to think about creating more flexible organizations based on core competencies and mutually beneficial, long-term outside relationships. I agree with the author in this area. It is impossible for any organization to have expertise in all areas of the company. Therefore, it is wiser to outsource some of the work to other organizations that can do it more efficiently in order to save time and money. How well this process will work depends on the relationship between the parties. Therefore, it is a key element to develop a fair and honest relationship in which both parties can benefit by working together.…

    • 1342 Words
    • 6 Pages
    Good Essays
  • Good Essays

    There are benefits that come from outsourcing if the subsequent objectives are wisely in mind. Industries have evolved to serve companies' outsourcing needs. Companies primarily outsource to avoid certain costs and business expenses (energy, labor, taxes). They increase efficiency in developping, researching, marketing and distributing giving competitive. Because eventually limited resources and time, outsourcing is also an element that can help business to shift its focus from peripheral activities toward work that serves the customer, and it can help managers set their priorities more clearly. Outsourcing also eliminates the bounds of time and geography.…

    • 693 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Outsourcing is when producers use different companies for certain parts of the production process. The work can be sent to other companies or to different countries. There are many advantages and disadvantages to outsourcing. An example of one of the advantages of outsourcing would be that it makes the prices cheaper in the United States. An example of a problem with or a disadvantage of outsourcing is that it reduces the amount of jobs in the United States. People argue whether or not it is good for the economy and that will be discussed further.…

    • 1665 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Based on the first argument pointing that offshore outsourcing increases employment abroad, conversely it is also argued that offshore outsourcing increases domestic unemployment. With the advent of globalization, majority of the company in first word countries like America turning more to the practice of offshore outsourcing. As a result, the availability of jobs is diminishing substantially in America. Take DELL for example, the company has been outsourcing their workforce by laying off domestic employee and increasing foreign employment. While this is a great approach for cost reduction, but at the cost of taking away more jobs from hard working Americans. Questionably, will the reduction in cost worth the persistent of higher…

    • 763 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Outsourcing is a lucrative option for many industrial and manufacturing companies, but the repercussions affect more than just profit margins. Many companies expand their reach to lesser developed countries in hopes of cutting down costs on overhead and employee wages. These companies do not take into account that, while doing so, they have a negative impact on unemployment ratings, the foundation of one-income households, contribute to the decimation of manufacturing based towns and cities, and open themselves up to security breaches and shaky business ethics.…

    • 947 Words
    • 4 Pages
    Good Essays
  • Better Essays

    OutSourcing

    • 1239 Words
    • 5 Pages

    Outsourcing is a strategic management decision, as well as a cost saving strategy. According to Michael J. Mol. (2007) “Outsourcing has indeed become one of the key restructuring tools for companies, with a promise to improve the fate of fledgling firms or to increase further the performance of firms that are already leading their industries.” Page 2. From here I will start my article about outsourcing.…

    • 1239 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Concept Fan

    • 419 Words
    • 2 Pages

    Outsourcing not only brings cost advantages but can also improve the efficiency of business operations. Outsourcing providers with the right expertise and experience can actually help streamline business processes and contribute to the bottom-line.…

    • 419 Words
    • 2 Pages
    Satisfactory Essays