Internal Service Versus Outsourcing Analytical Essay by Nicky

Considers whether a small company should outsource some work.
# 145224 | 808 words | 2 sources | APA | 2010 | US
Published on Oct 29, 2010 in Business (Companies) , Business (Human Resources) , Economics (Globalization)

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This paper discusses the controversy surrounding outsourcing, arguing in favor of using the services of workers in emerging foreign markets. First, the author defines outsourcing and further describes why it is controversial. Then, the paper lists several reasons why outsourcing benefits an American company and the economy in general. These are compared to the costs associated with an American company hiring internally, with the paper showing that outsourcing is more cost effective. The paper concludes that often hiring internally works to the detriment of the company in the long term.

Higher wage costs
Personnel training
Higher costs with benefits
Hiring and retention costs

From the Paper:

"The basic idea at the core of the outsourcing process is that it allows companies to benefit from the same amount of work at lower prices. They often outsource their tasks to developing countries with emergent markets, where labor costs are significantly lower. Given then that the minimum wage in the U.S. is higher than that in other countries to be considered for outsourcing, the company would have to pay higher wages for its internal employees."

Sample of Sources Used:

  • McDonnel, B.M., 2008, Contemporary Labor Economics, 8th Edition, The McGraw Hill Companies
  • Thompson, T., 2008, What is Outsourcing? Wise Geek, last accessed on December 12, 2008

Cite this Analytical Essay:

APA Format

Internal Service Versus Outsourcing (2010, October 29) Retrieved February 23, 2020, from

MLA Format

"Internal Service Versus Outsourcing" 29 October 2010. Web. 23 February. 2020. <>