Essay by dcarter03University, Bachelor's February 2011

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Outsourcing � PAGE \* MERGEFORMAT �5�

Running head: Outsourcing


Don Carter

Grand Canyon University



Introduction: The dependence of outsourcing as a way of providing a company inexpensive labor has steadily grown over the past two decades. It is estimated that this trend will increase at a rate of up to twenty percent a year. (Kruse, 2010) The debate on the overall effects on this subject is still going on. In this paper I will examine this subject in detail and discuss the advantages and disadvantages of outsourcing.

Outsourcing is a complex and tactically important action that helps companies achieve short term and long term benefits. It is no secret that a company can obtain labor in foreign countries at a fraction of the cost of hiring domestic American labor. Although begun in the manufacturing industries this thought process has been accepted by the service industry, the information technology industries as well as most other American industries.

This is accomplished by contracting the tasks out to foreign companies or managing foreign workers which are overseen by company managers.

Outsourcing for a company is a highly efficient enterprise. When a company needs an influx of seasonal workers they can accomplish this without the costly process of hiring permanent employees. When an employee is not being efficient or is causing problems amongst the workforce it is much easier to terminate the employee in a foreign job market than it is in the United States. This is due to other countries not being burdened by as many worker friendly labor laws as the United States.

Outsourcing also allows companies to add flexibility to its operations. By using inexpensive labor and not having to compensate for overtime or various shifts a company can increase its production while still operating at a...