Outsourcing

Outsourcing in America:

Advantages and Disadvantages

Jorge R. Zelaya

Grantham University

Instructor: Timothy Goss

EN102

April 17, 2012

Outsourcing in America:

Advantages and Disadvantages

“Where the heck are you at?” Has anyone ever called a customer service hotline and found out that the person on the other of the phone was rendering their service from an overseas country such as India or Honduras? At that moment, what might go through some people’s minds could very well be the perception of a melting pot including traces of criticism, personal feelings, and understanding. First of all, let’s explore the definition, and advantages and disadvantages of outsourcing in order to obtain a better understanding of the subject. Webster dictionary defines outsourcing as “a subcontracting a process, such as product design or manufacturing, to a third-party company. The decision to outsource is often made in the interest of lowering firm costs, redirecting or conserving energy directed at the competencies of a particular business, or to make more efficient use of labor, capital, technology and resources (Definition of outsourcing.)

Outsourcing brings to the table a vast number of ideologies as to defining the fine line between how advantageous or disadvantageous the process is; of course culminating in the best personal financial interest of the business owner. To summarize some of the benefits of outsourcing, one can see it as a strategic move which can allow companies to gain a competitive advantage on areas such as customer service, payroll, IT, and consumer technical support. Moreover, while conducting the decision making process in such areas afore mentioned, business owners must keep in mind that the reasons for taking their business offshore such as time zones, low cost labor, people management, diverse expertise, and low cost manufacturing products, could back fire into a cultural, political, or financial nightmare (Benefits of...