Shipping Out: The Effects of Outsourcing

Shipping Out: The Effects of Outsourcing

The purpose of this research was to define and explain the process of outsourcing by providing examples and focusing on the pros and cons as well as the short and long term effects. Possible solutions and the role of outsourcing in the future were also discussed. Outsourcing is when a company would rather hire workers from an external source to perform certain tasks in order to achieve full benefit of their capital. Businesses that outsource save money by hiring workers that will work for lower pay. These new workers may be less skilled and are able to perform the simpler jobs so that the skilled employees are able to focus on the core activities. Outsourcing benefits a company by saving money and freeing up labor but outsourcing causes problems for workers as well. One example of outsourcing is how the business process of manufacturing products and handling customer service calls for the Microsoft Company is outsourced to other businesses. Many other examples of outsourcing were discussed.