Who does not like outsourcing? Why?
Can you please answer these questions too ?
-Who is in favor of outsourcing? Why?
-What are the pros and cons of outsourcing?
i am strongly against it. it sends many well paying manufacturing jobs overseas, and although it may make costs cheaper for companies the savings most of the time is not passed on to the consumer. with all these manufacturing jobs being sent away, are all these displaced workers just supposed to find jobs in the service and retail sector? last time i checked its hard to make a decent living running a cash register. Not to mention the increased fuel consumption used shipping these foreign made goods across the ocean and loading it on to trucks to send back across the country.
Filed under: outsourcing pros and cons
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Sometimes outsourcing can reduce costs, sometimes its cheaper to outource something becasue its cheaper or to save time.
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i am strongly against it. it sends many well paying manufacturing jobs overseas, and although it may make costs cheaper for companies the savings most of the time is not passed on to the consumer. with all these manufacturing jobs being sent away, are all these displaced workers just supposed to find jobs in the service and retail sector? last time i checked its hard to make a decent living running a cash register. Not to mention the increased fuel consumption used shipping these foreign made goods across the ocean and loading it on to trucks to send back across the country.
References :
Outsourcing simply means receiving a good or service from outside the company. Every company does this to an extent.
Pros:
1. Flexibility. You can change suppliers easily if someone offers a superior technology or price.
2. Cost. Large companies such as GM are stuck with high labor costs and benefits. By outsourcing, they can reduce staff. The suppliers are likely to have lower cost structures.
3. Avoid Layoffs. It is much easier to stop buying an outsourced product or service than it is to lay-off workers. Especially in Europe and Japan…businesses will outsource jobs that are not consistently needed or that may be due to a temporary surge in market demand.
4. Efficiency. Outsourcing non-core functions allows a company to focus it’s resources on core competencies. For instance, virtually all companies outsource services such as Security, Landscaping, Marketing/Advertising, Shipping, etc. It would be terribly inefficient for a company to do all of these tasks internally.
Cons:
1. Control. Critical functions and core competencies should not be outsourced. The risks associated with relying on a supplier can be a big problem.
2. Confidentiality. If a supplier also works with your competitors, it can be a concern.
3. Efficiency. Although it can be a "pro"…it can also be a "con". If you can perform the task yourself without the need for significant additional resources, why pay someone else?
4. Reputation. If BMW outsourced it’s engineering, it would lose it’s reputation as the ultimate engineering company. If Procter & Gamble outsourced the production of Crest toothpaste to the same company that make generic toothpaste…it would be that much harder to justify the higher price.
Oh…
Outsourcing is not the same as Importing. A company can produce a product internally and still make it in Mexico. A previous answer was confused about this. His argument is about international trade…not outsourcing. The previous examples of Security services or Advertising are examples of this not being the case.
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