Outsourcing is an important part of Globalization. The choice to outsource U.S. jobs should be taken into great consideration as there are many segments into which it effects greatly. Also, outsourcing is a great option for a company who needs a certain project completed who do not have the man power or the money to hire a new employee, companies can outsource based on projects in the U.S.A. or abroad. Often outsourcing is a way to save money, but there can be unexpected costs as well. While it can be both a benefit to a customer it can also be a reason to avoid doing business with a company due to it. The decision to outsource is certainly not one that any organization should enter into ...view middle of the document...
In situations similar one has to wonder who benefits from outsourcing labor and taking jobs away from the U.S.A. if it is not the customer.
Outsourcing can benefit companies because outsourcing globally not only means cheaper labor, but it may mean more stability for a company hiring globally. U.S. employees have more job opportunities and more education choices whereas developing countries may not have such luxuries therefore the hiring of employee or service in a call center globally may be the more economical choice. Training new employees is expensive. This is especially the case in high turnover jobs such as customer service call centers. Each new employee may need one to three weeks (or more) of training before being able to start working. In addition, there are materials to create and trainers to hire. When you outsource your customer service call functions, the outsourcing firm takes care of all this.
If one has a small business, you probably can't justify having all the latest technology for every employee. It just costs too much. An outsourcing firm, however, likely can afford the latest technology since that is part of their core business. You can have employees working on site 24 hours a day. However, it is harder to attract talented employees to work less desirable shifts. This is no longer a problem with outsourcing. Your company can provide service 24 hours a day, with workers around the globe operating in the best shifts available. Chances are your company has something it does really well. It is the reason the company began in the first place. To run a business, however, requires skill in many different operations. Some of these operations take the focus away from what you do best. It is easy to solve this problem by outsourcing so you can focus on your core business.
Even though there are many reasons to consider outsourcing, there are also some negative aspects that need to be considered. Some of the disadvantages of outsourcing include that many employees feel threatened No one likes to think his or her job may be in jeopardy. Once your employees notice that jobs are being outsourced, they may think their jobs are next. This can cause some employees to leave your company in search of one that isn't outsourcing tasks. It can also cause general uneasiness, which can lead to lower morale and less productivity.
Once you let another person or firm handle major aspects of a business, loss of control is imminent and the down line structure of command is affected as well. New customer service issues can arise because of outsourcing globally. Customers may not be handled the way you prefer and management may make decisions you don't approve of. If total control is important to you or your business, do not consider outsourcing.