The Outsourcing Controversy

Paper Summary:

The paper discusses how the process of outsourcing seems to be useful to the individual organization, but some maintain that the country as a whole suffers since it results in the loss of jobs. The paper explains that there is definitely a loss of jobs in the initial stages but the procurement of cheaper services accelerates productivity growth, creates new jobs, lowers inflation and further increases innovations. The paper also shows how outsourcing does not adversely affect employment. The paper does assert that the trend of insourcing has to continue at the same rate as outsourcing for America to remain the most robust economy.

Outline:
Definition
Types of Outsourcing
Reasons for Outsourcing
Benefit Analysis

From the Paper:

"The concept of taking internal company functions to an outside company and paying it to handle them is outsourcing. It is done to save money, improve quality, or to free company resources for other comparatively profitable activities. Originally, outsourcing was done primarily for consultancy services but the trend has been increasingly spreading to cover practically all aspects of business activity. Nevertheless, the three major areas in which companies outsource are information technology, operations, customer services, finance, human resources, and services relating to real estate, facilities management, reservations and sales operations, and logistics. However, it is critical to remember that outsourcing does not mean abdication of management responsibility."

Sample of Sources Used:

• Hira,Ron. Outsourcing America. New York: American Management. Association. 2005
• Hilary, Mark Kobayashi. Outsourcing to India. New York: Springer. 2004.
• Delaney, John F. The Outsourcing Revolution. New York: Practising Law Institute. 2004
• Axelrod, C Warren. Outsourcing Information Security. New York: Artech House. 2004

More papers on The Outsourcing Controversy:

• Analytical Essay # 72078 : "Outsourcing: Causes and Consequences"
• Case Study # 53076 : "Outsourcing in the IT Industry"
• Analytical Essay # 145224 : "Internal Service Versus Outsourcing"

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