Should Companies Practice Offshore Outsourcing As A Business Strategy?

In this rat race society, if a firm wants to survive in such a competitive world, the firm will have to outsource some of its parts to other company. Outsourcing was first carried out between companies in the same country. With the growth of economy and technologies, companies have to start to outsource the jobs to other companies from the other countries, such as China and India. That is called as offshore outsourcing. However, there are a number of problems with offshore outsourcing, such as risk of sharing data. Should the companies practice offshore outsourcing as a business strategy? Offshore outsourcing can actually benefit the companies as it can provide more jobs abroad, improve efficiency and quality, and also reduce the costs. For
When more jobs are outsourced in countries where people are struggling to make ends meet, it will not only create more job opportunities for the nation but also aid the country to stand a chance to compete in the market place. Despite the abundant supply of outstanding graduates in the low-wage foreign country, the lack of job opportunities in their own country is what contributing to the excess talent pool. Thus, companies who outsource their needs to people from these countries can utilize abundant of skilful labour while at the same time the nations will also be provided with platform to showcase their skills and talents. Take America’s leading footwear industry, NIKE for instance, it has been outsourcing the production of its footwear to countries like China, India and Vietnam. This practice creates more job opportunities in the countries where the task being outsourced, hence employment rate
Based on the first argument pointing that offshore outsourcing increases employment abroad, conversely it is also argued that offshore outsourcing increases domestic unemployment. With the advent of globalization, majority of the company in first word countries like America turning more to the practice of offshore outsourcing. As a result, the availability of jobs is diminishing substantially in America. Take DELL for example, the company has been outsourcing their workforce by laying off domestic employee and increasing foreign employment. While this is a great approach for cost reduction, but at the cost of taking away more jobs from hard working Americans. Questionably, will the reduction in cost worth the persistent of higher