Outsourcing

Running head: THE WORLD OF OUTSOURCING

Outsourcing of Businesses in the World Today

Kaplan University

CM225: College Composition II for Business Majors

Christie Zgourides

December 8, 2009

Outsourcing of Businesses in the World Today

Outsourcing has become a normal business practice for many companies in the world. Outsourcing is when a company decides to sub-contract with another company to perform certain functions. Some businesses actually move some of their internal jobs to outside companies to focus more on important functions in the organization. Companies normally outsource jobs like information technology (IT), billing, call centers, and even payroll positions. They can be outsourced to companies in the United States and overseas. Outsourcing has many advantages and disadvantages that can help and or possibly hurt the company or its employees.

Many companies outsource to increase productivity and service. These companies produce more products by outsourcing there services to overseas providers at cheaper costs.

They also feel that they can get better customer satisfaction from these providers because of the increased productivity. Outsourcing can help many companies reduce investments to free up some of their resources. Outsourcing can help many companies financially in the future.

Some of the advantages of outsourcing can be beneficial to a company and its employees. There are companies that can save on capital if they outsource to other companies that charge lower costs to manufacture their products. Many firms have had job increases due to outsourcing. There was an increase from over 200,000 to over 300,000 jobs added from 2000 to 2005 because of outsourcing (Gibson, 2005). These jobs included computer software engineers, hardware engineers and computer managers. Some other advantages of outsourcing include lower personnel costs. A business would not have to pay consistent wages or offer benefits to non-employees after outsourcing. The...