Because the world economy has become more competitive, and the advancement of technology has dwindled down the footprint of our globe, many companies have had to take advantage of outsourcing and in some instances off-shoring many parts of their business, if not all. In order to stay competitive and remain profitable in the global economy most companies feel the pressure to outsource certain departments that would be considered a liability versus those that generate revenue. However, the benefits of outsourcing may come at a cost to dedicated employees that would ultimately be eliminated as a direct result of outsourcing.
The question remains, for any business that plans to outsource, whether the cost advantages outweigh the work involved needed to outsource or if even the risk they take with their company’s image. Like any endeavor that is embarked on or major decision that needs to be made there are pros and cons to consider. In this paper you will find that these questions will be addressed. It will cover three points of views; the advantage of outsourcing, the drawbacks from outsourcing and the value of outsourcing.
The Benefits of Outsourcing
When businesses discuss outsourcing, the idea of cost savings is immediately thought of as a major benefit. The purpose of becoming more profitable in a very competitive global economic market can be motivation of prodigious proportions. The threat of losing profits or closing down completely, businesses have learned how to take advantage of a technologically advanced world to reduce cost and being able to compete in the global market.
Outsourcing is not a new concept; in fact it has been around since the dawn of business itself.
In order for the outsourcing process to succeed a strong and lasting relationship between the companies
that are looking to outsource and the entities that will provide the outsourced service must exist (Grauman 2000). It is acceptable to think that a...