Seeing Beyond the Bright Side of Outsourcing - Essay Example

Only on StudentShare

Extract of sample
Seeing Beyond the Bright Side of Outsourcing

At present, outsourcing has become a very popular source of competitive advantage. By paying other companies to run IT and other support divisions, many U.S. companies are cutting staffs, costs, and increasing efficiency. The immediate benefits can be great, allowing smaller companies to gain cheaper access to expensive technologies and allowing large firms to expand there IT usage without risk of obsolescence. As with any potentially rewarding activity, there are risks involved. Companies need to weigh the risks, rewards, and costs involved before making a decision to outsource. The more vital the task, the more care should be taken with this decision (Kakumanu and Portanova, September 2006). But, first what is outsourcing
According to Webster's New World Finance and Investment Dictionary (2003), outsourcing is an increasingly popular process where a company contracts with another company to manage services that it needs but that it doesn't want to provide itself. Typically, outsourced services are non-core activities such as janitorial services, information technology, and food catering for the employee cafeteria. Sometimes companies outsource manufacturing and focus on sales and marketing. As such, outsourcing became popular because it allowed companies to reduce short-term costs. ...
Download paper


In the age of globalization, the business sector had to ride the waves of rapid changes in its many structures to keep up with the upsurge of their competitors' innovations and strategies. In line with this, many global companies are lapping up their chances in doing away with unnecessary costs in production…
Author : stehrshyann

Related Essays

Outsourcing Essay
Critics admit that there are both pros and cons of outsourcing based on unique nature of every industry and current state of economy. In cases where this is technically possible, the cost advantage of outsourcing will probably apply to component parts of production processes, leading to outsourcing by the developed economies. Indeed in the current period the large growth in merchandise trade relative to merchandise production in the less developed economies can be attributed both to the increased number of exporting final goods to the developed economies, and also to growth of the latter's...
8 pages (2008 words) Essay
Review of Beyond Charity by Perkins
Relocation, reconciliation and redistribution have both positive and negative impact on community and relations inside social groups. The positive issues are that it helps people at risk to overcome temporary problems and survive. The necessity to create this direction in ministry work is caused by a flux of f immigrants from former colonies. By maintaining the welfare system, the church has preserved the status quo dear to the wealthy and powerful position. During this period of time, it employed a shrewder method. It pacified the poor, while the main elements of their condition do not...
2 pages (502 words) Book Report/Review
Honeywell Outsourcing
The largest of these divisions is Honeywell Aerospace which produces aircraft components, engines, avionics for commercial airlines, business and regional aircrafts and spacecrafts (Honeywell International, Inc., 2006)....
8 pages (2008 words) Essay
se of two dramatically different effects – while some claim that it will result in layoffs and dislocation for many US workers, most economists believe that it will ultimately strengthen the US economy (Otterman, 2004). Outsourcing should not be restricted as it will be good for the US economy in the long run....
9 pages (2259 words) Essay
Global Outsourcing
Despite the recent economic downturn, according to a McKinsey Analysis, the U. S. economy created an average of 3.5 million new jobs in the private sector per year (Otterman). Nine million people come on to the job market every year (Gardels, 2004). Outsourcing helps to stimulate the economy. The loss of jobs can be attributed to other factors like the bursting of the tech bubble and its effects on Wall Street, the consolidation of retailing under giants like Wal-Mart, and the after math of September 11 and other events. ...
4 pages (1004 words) Essay
sourcing lies in the incompatibility of effective stakeholder participation with outsourcing projects especially those who outsource globally because very often this outsourcing takes place in far-flung corners of the world and which the stakeholders find it difficult to handle because of clash of culture and work environment. Like any other business the outsourcing process has its own pros and cons which play a big hand in either the success or the failure of the project. If the management of the tow parties is excellent and there is mutual trust and understanding between the firm and the...
12 pages (3012 words) Essay
From raw materials to semi-finished components, from consulting to detail engineering and from direct sales to distributor/retailer networks – there have been avenues for outsourcing as a part of strategic management of operations. The new twist to this has been the phenomenal growth of outsourcing from overseas resources as opposed to the conventional local outsourcing, resulting in significant job losses at home and the public outcry....
2 pages (502 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!