Pros and Cons of Outsourcing and Offshoring, Essay Example

For many years, businesses have been outsourcing work. Outsourcing allows organizations to supply services to clients at a lower cost than the client companies would pay if the job were done in-house. Offshoring is outsourcing work to “foreign” enterprises mainly to benefit from reduced labor costs in such nations.

Offshore creative resources usually save money compared to in-house, making them a strategic choice to explore for production-oriented design projects. The decreased resource expenditure will allow companies to reinvest their savings in additional onshore resources or tools that will offer more value to their creative potential.

One of the most difficult aspects of outsourcing abroad is the complexity of teaching their offshore staff. Assume, for example, that the training plan is not well managed. Language barriers may make it difficult to assess how well offshore resources are processing their training, resulting in quality control issues or poorer production efficiency. Furthermore, the basis of geographical differences may make it very difficult for the local team to train.

When companies outsource an offshore team, they must overcome several technological obstacles in order to ensure that their offshore team has complete access to their local servers, and other networked systems. They must also account for network delays experienced by their offshore workers; otherwise, they risk misrepresenting their productivity allocations and breaching project deadlines. Offshoring is seen as just another way for super-rich company executives to enrich themselves at the expense of ordinary workers.

Outsourcing work to organizations that can do it more effectively and cheaply can make sense if it lowers costs in the long term and is done considering the effects on people and the environment.