Pros and Cons of Outsourcing
Pros and Cons of Outsourcing
ShaQuanvia Jones
Potomac College
Pros and Cons of Outsourcing What do you do when you need a job done that someone else specializes in? Well, of course you would hire that person to do the job. For instance, when you have a company, there are many parts to the company and each part has a different specialization. So they hire people that can do that job. It is the same way with larger companies. They hire manufacturers and smaller companies that specialize in a certain job to do it for them. This is all called outsourcing. Even though it sounds like myriads of advantages, it also has some disadvantages also.
What is outsourcing?
Outsourcing is obtaining goods and services from an outside supplier. It is like a contract with someone or a company to do a particular job that they specialize in. A car factory would hire companies that make the different parts of the car. Since the company already has the supplies and machinery for the parts it would be cheaper. In this case, the company that is helping the car factory would be called a service provider. It is providing a service that it specializes in to a larger company. These service providers are also called third-party providers. This name is given because it is the provider behind the main provider. Outsourcing is done in many companies like insurance companies, grocery stores, and many of the big businesses.
Pros of Outsourcing With outsourcing comes many pros, or advantages. Outsourcing is very popular in our country and internationally. It helps businesses focus on their priorities or their main functions instead of secondary tasks. For example, if a company was good in handling finances, it would be hired to handle only the finances. Outsourcing also reduces expenses by finding certain industries purposes in areas where important costs are cheaper. If you noticed, many of our clothes or shoes are made in China. This is an example of outsourcing but it is a certain type
ShaQuanvia Jones
Potomac College
Pros and Cons of Outsourcing What do you do when you need a job done that someone else specializes in? Well, of course you would hire that person to do the job. For instance, when you have a company, there are many parts to the company and each part has a different specialization. So they hire people that can do that job. It is the same way with larger companies. They hire manufacturers and smaller companies that specialize in a certain job to do it for them. This is all called outsourcing. Even though it sounds like myriads of advantages, it also has some disadvantages also.
What is outsourcing?
Outsourcing is obtaining goods and services from an outside supplier. It is like a contract with someone or a company to do a particular job that they specialize in. A car factory would hire companies that make the different parts of the car. Since the company already has the supplies and machinery for the parts it would be cheaper. In this case, the company that is helping the car factory would be called a service provider. It is providing a service that it specializes in to a larger company. These service providers are also called third-party providers. This name is given because it is the provider behind the main provider. Outsourcing is done in many companies like insurance companies, grocery stores, and many of the big businesses.
Pros of Outsourcing With outsourcing comes many pros, or advantages. Outsourcing is very popular in our country and internationally. It helps businesses focus on their priorities or their main functions instead of secondary tasks. For example, if a company was good in handling finances, it would be hired to handle only the finances. Outsourcing also reduces expenses by finding certain industries purposes in areas where important costs are cheaper. If you noticed, many of our clothes or shoes are made in China. This is an example of outsourcing but it is a certain type