, Jkhlok
Jake Rasbeck
Economics
28 November 2011
Outsourcing Saving money seems to be the main priority in any business running today, and they will do anything to make that happen. Outsourcing is an option that many companies choose to go with providing it has financial advantages. Many large companies now outsource jobs such as call center services, e-mail services, and payroll. These jobs would be outsourced to another company that specializes in each of those services and in most cases it would be overseas. The outsourcing services company will do the work for considerably lower prices than it would be if it had been handled locally. There are many advantages and disadvantages to outsourcing but ill first start with the pros. We’re in a time of booming corporations expanding daily at an alarming rate. As a corporation expands, its back-office operations do as well. When you finally start to use up human and financial resources to keep up with this rapid growth, the focus of the corporation shifts. Outsourcing those activities would allow refocusing on the main priorities of the business. No longer worrying about those other issues would allow for a business to go on the rise again. Those outsourced companies will handle all of corporations’ normal back-office duties for a much cheaper price and much less hassle. This can be very valuable to any major company that is in the process of expanding. Although there are some advantages to outsourcing there are also the disadvantages. Whenever a company signs a contract to have another company perform a task, it’s turning the managerial control over to another company. Although it may specialize in the task it needs completed, that company may not be driven by the same standards or goals as the corporation. They may be a sketchy company out to only make profit. That company may have hidden costs and additional charges not covered in the contract. Also another major disadvantage is the threat to a corporation’s
Economics
28 November 2011
Outsourcing Saving money seems to be the main priority in any business running today, and they will do anything to make that happen. Outsourcing is an option that many companies choose to go with providing it has financial advantages. Many large companies now outsource jobs such as call center services, e-mail services, and payroll. These jobs would be outsourced to another company that specializes in each of those services and in most cases it would be overseas. The outsourcing services company will do the work for considerably lower prices than it would be if it had been handled locally. There are many advantages and disadvantages to outsourcing but ill first start with the pros. We’re in a time of booming corporations expanding daily at an alarming rate. As a corporation expands, its back-office operations do as well. When you finally start to use up human and financial resources to keep up with this rapid growth, the focus of the corporation shifts. Outsourcing those activities would allow refocusing on the main priorities of the business. No longer worrying about those other issues would allow for a business to go on the rise again. Those outsourced companies will handle all of corporations’ normal back-office duties for a much cheaper price and much less hassle. This can be very valuable to any major company that is in the process of expanding. Although there are some advantages to outsourcing there are also the disadvantages. Whenever a company signs a contract to have another company perform a task, it’s turning the managerial control over to another company. Although it may specialize in the task it needs completed, that company may not be driven by the same standards or goals as the corporation. They may be a sketchy company out to only make profit. That company may have hidden costs and additional charges not covered in the contract. Also another major disadvantage is the threat to a corporation’s
Cited: “Outsourcing Statistics.” Halogen Corporation : Your Partner in Outsourced Transation Processing, Automation and Compliance Solutions. Halogen Corporation. Web. 27 Nov. 2011. http://www.halogencorporation.com/outsource_statistic.html. “Outsourcing- Definition of Outsourcing.” Business Operations and Technology. Web. 27 Nov. 2011 http://operationstech.about.com/od/glossary/g/Outsourcing.htm “What Is Outsourcing?” WiseGEEK: Clear Answers for Common Questions. Web. 27 Nov. 2011. http://wisegeek.com/what-is-outsourcing.htm