Outsourcing – The effects on the US economy Trevor Muthaliff CITM 100 Abdul Zahid Outline Introduction Advantages of Offshore Outsourcing Opening sentence: There are substantial benefits for companies that outsource because they do not have the high labor rates, health insurance costs, retirement plans, unemployment insurance and numerous other expenses that are associated with operating a business in the United States. There are also considerable tax benefits for these companies as well because they do not have the real estate needed to produce and warehouse their products. This saves money because they do not have the overhead needed to maintain these facilities or the tax burden associated with maintaining an inventory. In the long run, consumers of the products and services that these companies offer, save as these companies pass the savings on by way of reduced prices. Outsourcing offers a different perspective other than that of the company’s Outsourcing provides companies with more cost effective ways to do business and it also saves companies a lot of time because they can focus their attention on other areas of the business Outsourcing can also be beneficial to the customer because customer service is increased because call centers that are based overseas makes it possible for people to get customer support at different times because of the different time zones Disadvantages of Offshore Outsourcing Opening sentence: Loss of managerial control, because it is more difficult to manage outside service providers than managing one's own employees working possibly in the same building. Outsourcing may cause employees to believe that they are not qualified enough to perform certain task and this may let them lose confidence in their work and therefore lower their quality of work. Business involves many risks and outsourcing is one of them....
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