Advantages of Outsourcing - Read more about benefits of outsourcing, advantages of offshore outsourcing, it outsourcing benefits, articles on advantages of outsourcing. Also provides useful tips on offshore outsourcing including benefits and disadvantages.
Outsourcing is one of the most discussed issues today. Many believe that outsourcing has led to increase in unemployment in countries like the U.S.A. However the benefits of outsourcing out weighs its disadvantages. We shall now discuss the advantages of outsourcing both to the country that is outsourcing and to that, which is performing the job of outsourcing
The very argument that outsourcing has led to increase in unemployment in the U.S. is debatable. Statistics show that though the rate of employment has declined slightly, unemployment has not actually increased. There are more jobs in the employment market like never before. The economy is in the process of recovering from the recession. It is the age of free trade. There is no point in following a protectionist policy, as it would be against economic freedom. In addition, it would retard the economy.Cost Efficiency
Outsourcing would mean better cost efficiency. Successful companies have realized that they have to outsource, as they cannot do, justice to all aspects of business- production, distribution, and marketing, researched. Cost cutting could be possible if some of these are outsourced to workers in other countries .These workers are paid much lesser than what their counterparts in the developed country expect to be paid. Training costs are also minimalised .The service providing worker possesses specialized skills making him more efficient than the one in the developed country. Speed of service improves. Customer satisfaction also improves. These results in cost cutting which in the final analysis will benefit the average American. He would be able to buy the product at a cheaper price.Greater Access to Resources
For the outsourcing companies, it would mean that they have more resources, time and energy in their hands. They can now focus more on their actual business. They have outsourced only their not so crucial activities. They have retained the all-important function of decision-making Risks are better managed. They are not so vulnerable to the fluctuations in their economy.they could start new projects. All this will make them immensely competitive.
Here it would be worth mentioning that that the company that is providing outsourcing service would also benefit as it would now be in touch with a bigger company. It will improve the employment situation in the less developed country .the pay that the worker gets is much higher than that can be expected from a local company. The economy in general benefits from the arrangement. Thus outsourcing has proved mutually beneficial.
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