Outsourcing is it beneficial or a threat!?

[C2CO]

With the economic conditions we're facing, more and more businesses are choosing to outsource their non core functions. Just thinking of issues such as payroll taxes, employee fringe benefits, unemployment insurance and other benefits to offer makes them decide.

It is a lot work to begin with and resistance from each staff affected. Employees feel threatened, they are thinking that they are losing their jobs. Others are worry about security issues.

But there are so many good reasons to consider outsourcing. Here are the most significant advantages:

Cheaper Labor. This is the most well known reason to consider outsourcing. Workers in developing countries are paid far less than workers in developed countries due to the lower cost of living.

Cut Operating Cost. Eliminates costs associated with hiring & recruitment.

Increase Productivity. Service 24 hours a day, with workers around the globe operating in the best shifts available.

Focus on Core Business. Your core job is to manage your business, give better service to your customers and attend to their needs. However there is a lot of paperwork to be done but you have a little time or inclination to do it. You can solve this problem by outsourcing those and focus on your core business.

These are just some of the pros and cons of outsourcing.

[KH_Global]

Everything has its own pros and cons. You can focus on core things and leave the non-value added works to others.

[Remotestaff]

Globalization has brought on increased competition, to the point that outsourcing has become a company's prevalent and misused tool to keep up with their global competitors.

To business owners, outsourcing is a blessing, but to employees, it has become a bane.

Whichever way you look at it, there will always be passionate advocates on opposite sides, shouting at the top of their lungs why their paradigm is better.

[lucygreenlucky]

Outsourcing in our company is to invite students to do translation job and pay for them.The pay expenses is less than fee of hiring a translator to do this job and the efficiency is better. And this job remits problem of emplyment in our country to some extent.

[killer2021]

Globalization has brought on increased competition, to the point that outsourcing has become a company's prevalent and misused tool to keep up with their global competitors.

To business owners, outsourcing is a blessing, but to employees, it has become a bane.

Whichever way you look at it, there will always be passionate advocates on opposite sides, shouting at the top of their lungs why their paradigm is better.

Pretty much hit the nail on the head. For US workers its a huge threat to their livelihood. Potential employers are going overseas to hire people at a fraction of the cost. For the US worker (who would normally be doing the work) that means working for less money, working less hours or out of a job. Simple as that. For the business owner, it means your dollar goes so much further. My business would have gone bust long time ago if I had to hire US workers. There is also significantly less liability with outsourcing. No need to worry about getting sued for sexual harassment, pay discrepancies, equal opportunity blah blah blah. Sorry but the USA dug its own hole. Americans are simply too expensive to hire. Foreigners provide better value for my dollars.

For the US outsourcing is going to be devastating. The labor force in China is 800 million and in India its 500 million. To put that into perspective, the labor force in the USA is about 150 million. So you could just see how easily devastating outsourcing could be for the USA. For the most part, most of the growth of jobs is in low wage service jobs like food prep, retail and so on. From what I see this is what is going to happen. Basically the USA is going to turn into a huge retail outlet. No one will make anything here. The business HQ will be located in Singapore, Hong Kong or Dubai. The factories will be located in China. All the goods will be brought over on ships. The only jobs left will be low wage service jobs and jobs related to resource production (ie. farming, fishing, logging, energy production etc.)

[jonn655]

There are advantages in outsourcing but it is not just limited to countries in Asia or Eastern Europe. It is being done locally in U.S. and U.K. too.

[Remotestaff]

For the US outsourcing is going to be devastating. The labor force in China is 800 million and in India its 500 million. To put that into perspective, the labor force in the USA is about 150 million. So you could just see how easily devastating outsourcing could be for the USA.

800 million for China?? Woww !!

Looks like, there will come a time when the USA will have to get back to basics, i.e. focus on agriculture, raw materials, utilities that produce renewable energy...maybe even R&D

[jonn655]

Perhaps nations now must work together to form mutually beneficial agreements, that while international trade is promoted, their economic requirements are also addressed. If this is going to undertaken there won't be any issues to deal with conflict of interests. And that is beginning now.

[jonn655]

As far as outsourcing is concerned it does help in another way - the creation of wealth within countries.

[Anthony Tori]

There are a lot of pros for the individual business. However, what happens when everyone outsources because it's cheaper? Nobody in your own country has disposable income to buy your products.