Global Outsourcing

Essay by nguyenthien45University, Bachelor'sA, June 2009

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IntroductionIn today's global competitive marketplace, outsourcing is also rapidly becoming a major factor that contributes to profit as well as the success of a company. Global outsourcing that was developed in 1950s has had remarkable influences on international business as well as on global marketplaces (Burkholder 2006). Today, with development of science and technology, global outsourcing has spread in many countries, particular in Asian countries. The reason why outsourcing is the important strategy of business is that it has brought a great deal of benefits such as cost saving, core competency focus, reduced production time and increased efficiency (Kehal & Singh 2006). Outsourcing decisions are frequently based on current supply and market trends and competitive pressure.

Nowadays, the term "outsourcing" is seen in not only Information Technology area but also in other areas such as customer service, human resource, business process improvement and finance. The readers of this paper will perceive that outsourcing has brought many benefits to many fields.

In several surveys reported by The Country Monitor (1997), however, there are worries about business ethics in outsourcing partners. The employees are ridiculously underpaid, ill-treated and underage, especially as the work is so dangerous. Nike, for example, hires some employees with low salary that they can not afford to their living (The Country Monitor 1997). This issue will get difficult to change because it has tremendous effects to profit of business.

This research aims to show that outsourcing is very successful in both small and large businesses due to its benefits such as quality and strategy improvement. In this paper, we will examine the reasons why companies get their products manufactured in other countries like China and India. It also addresses the reason why outsourcing is viable for companies in the development of market place.

I.Overview1. What is OutsourcingThere are...