To Outsource or Not to Outsource, Essay Example

Businesses all of the world are participating in the latest phenomena known as outsourcing and while the process does make séance economically from an economic stand point, almost every person affected by the practice seems to be negatively impacted. The question here is why is that the case? What are the real pros and cons behind what can virtually be called the newest operating systems of industry? Although outsourcing does provide many benefits for the company that puts this technique into action, ultimately it will cause more harm than good.

To start, however, and truly cultivate an understanding of what people who are affected by outsourcing are dealing with, it is essential to understand what outsourcing actually is; exactly what the practice entails. Outsourcing “refers to a company that contract with another company to provide services that might otherwise be performed by in-house employees,” (Thompson, 2011). “Many large companies now outsource jobs such as call center services, e-mail services, and payroll. These jobs are handled by separate companies that specialize in each service, and are often located overseas” (Thompson, 2011).

Now, as with any decision made by a corporation, there are any number of reasons that a company may choose the route of outsourcing as opposed to hiring additional employees for the aforementioned ‘in-house’ opportunities; still, the most “prominent advantage seems to be the fact that it often saves money” (Thompson, 2011).In fact, most of the “companies that provide outsourcing services are able to do the work for considerably less money, as they don’t have to provide benefits to their workers and have fewer overhead expenses to worry about,” (Thompson, 2011).

So, with that in mind what are the benefits of outsourcing? To begin with, there is the obvious fact that as the economy is a bad state, and not just in the United States, but worldwide, certain cuts have to be made to keep floundering companies afloat. Through outsourcing, one is enabled to keep the “focus” of the business “on the main” segments of the business in question, (“The Pros and Cons of Outsourcing,” 2011).“Training, building space, and other main areas of” any “business can be handled by” the companies personnel “while other less significant tasks are better handled by outsourcing,” (“The Pros and Cons of Outsourcing,” 2011).

In addition, companies “will not have to hire a full time staff in order to handle” tasks such as “computer and technological support, nor will” the company that is outsourcing “need a staff to handle” the “accounting,” (“The Pros and Cons of Outsourcing,” 2011).“Outsourcing can take care of those facets easily and not affect the main segment of” “business,” (“The Pros and Cons of Outsourcing,” 2011).

Plus, there is the natural argument that the economy can surge forth a bit through outsourcing. “The act of outsourcing produces more jobs and promotes more work for existing jobs that are struggling. There are even companies that work outside of the US that will outsource their work to the US creating even more jobs,” (“The Pros and Cons of Outsourcing,” 2011).

However, there is still the concern that the “lower prices” of the outsourcing companies can offer will “damage the number of jobs available in the US,” and that is where one has to start evaluating the cons to the ever growing practice of outsourcing, (“The Pros and Cons of Outsourcing,” 2011).

In addition to jobs loss in the United States, there are other disadvantages to be considered as well. It is a painfully obvious fact that outsourcing generally “eliminates direct communication between a company and its clients,” (Thompson, 2011). Not only does this “prevent a company from building solid relationships with their customers,” but “dissatisfaction,” is a common side effect from both sides, (Thompson, 2011).

There is also the instability that appears when a company is not able to “control some aspects of the company,” (Thompson 2011).Not only are the aforementioned delays an agonizing by-product, but those very delays can also cause projects to be delayed or new procedures put into place.

And of course, “any sensitive information is more vulnerable,” as there are an increased number of people dealing with the content, (Thompson 2011).Unfortunately, should the outsourcing provider excuse themselves from their contract in some way, shape, or form, problems could arise from said sensitive data.

As with any business decision, the final judgment can only be reserved for each individual company to make; still it never hurts to be will informed. While of course there are going to be benefits to outsourcing, it is hard to determine whether or not they will outweigh the considerable drawback of such a practice. While no one would ever blame a business that is trying to survive for making hard choices, the negative feedback from the people on the home front who are missing out on those jobs is still going to play a role in their continued success or failure.

References

(2011). “The Pros and Cons of Outsourcing.” Outsourcing. Date Accessed: 04 Feb. 2011

Thompson, T. (2011). “What is Outsourcing.” wiseGEEK.com. Conjecture Corporation. Date Accessed: 04 Feb. 2011. Web.