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Outsourcing and its Benefits

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Outsourcing and its Benefits
It Takes Two to Tango As society progresses so must its people. In today’s globalized economy, companies are continuously looking for new and innovative ways to sustain revenue in this competitive environment. Companies may raise or lower the price of their goods to stay competitive and most importantly, in business. However, if a company were to outsource its work it would have to do neither of the two. Outsourcing calls for the process of obtaining goods from a foreigner outside source. Almost every organization outsources in some way; typically, the function being outsourced is non-core to the business. By choosing to outsource jobs in developing countries, businesses can attain massive benefits while simultaneously strengthening the economies of the two partners. To some outsourcing may seem as a choice, but in reality its cost saving factors may be the only option. In America, almost every person has seen or bought a product of an outsourced company. Volkswagen, Nike, Apple, and other commonly known brands are only a small fraction of the many companies that choose to outsource production. Thanks to globalization, companies in China, Vietnam, Mexico, and other developing countries are able to keep and improve quality control through a skilled workforce. The products created by the outsourced workers are far from the stereotypical shoddy “Made in China” quality plastics. Contrary to common belief outsourced workers are not random people looking to do a job, but instead they are trained workers specializing in a specific task. For instance, a Chinese employee who assembles iPhone software is skilled in doing just that, and he/she would not be familiar with other assembly methods (Cunningham 32). Similar to the specialized iPhone maker, the factories are also specialized to create a specific product, as it would not make sense to assemble bicycles in a cotton factory. By focusing on and mastering one job, workers are able to focus their attention and skill to


Cited: Childs, Carson. "It Takes 3 to Run a Business." Entreprenuer.com. Entreprenuer.com, 30 Mar. 2010. Web. 06 June 2015. Crill, Rosemary. Textiles from India: The Global Trade. Calcutta: Seagull, 2006. Print. Cunningham, Sharon. Outsourcing. London: Euromoney Institutional Investor PLC, 2002. Print. Eltschinger, Cyrill. Source Code China: The New Global Hub of IT Outsourcing. Hoboken, NJ: John Wiley & Sons, 2007. Print. Maidment, Fred H. International Business. Dubuque, IA: McGraw-Hill, 2007. Print. Mankiw, N. Gregory. Principles of Economics. Fort Worth, TX: Dryden, 1998. Print. Staff. "Outsourcing Sourcingmag.com - IT and Business Process Outsourcing." Sourcingmagcom RSS. Riverwood Solutions, 2 May 2012. Web. 04 June 2015. Wonnacott, Paul, and Ronald J. Wonnacott. Economics. York: McGraw-Hill, 1979. Print.

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