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...
References: Bednarz, A. (2004, July 5). The downside of offshoring. Network world, 21(27), 33-35. Retrieved on November 27, 2005, from EBSCOhost database.
Borg, H. (2003, May 20). Outsourcing of human resources. The Pause Scholarship Foundations, 1-70. Retrieved on December 6, 2005, from http://www.mah.se/upload/Omv%C3%A4rlden/ Cerrio/Outsourcing%20of%20HR,%20Hakan%20Borg,%20May%202003.pdf
Dulebohn, J. H. (2005). Outsourcing America: What 's behind our national crisis and how we can reclaim American jobs. Human Resource Planning, 28(3), 46. Retrieved November 17, 2005, from InfoTrac database.
Mehlman, B. P. (October 14, 2003). Offshore outsourcing and the future of American competitiveness. Retrieved on November 11, 2005, from www.global-trade-law.com/Outsourcing%20(Commerce%20OTA).White%20Paper%20(2003).pdf
Outsourcing. (2005). Retrieved December 11, 2005, from MSN Encarta Web site: http://encarta.msn.com/encyclopedia_701702628/Outsourcing.html
Sheats III, F. B. (2004). The pros and cons of offshoring. National Real Estate Investor, 46(11), 56. Retrieved November 27, 2005, from EBSCOhost database.
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