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