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Read the below article and answer the following questions...A) What are the positives of overseas outsourcing?B) What are the negatives of overseas outsourcing?C) If you owend a business and were faced with the option of overseas outsourcing, would you do this to survive? Explain your thought process in detail.
A Guide To Outsourcing Overseas February 11th, 2011 In these tough economic times, many businesses and corporations are finding it difficult to keep an in-house staff to perform secondary functions, and as a result many of these businesses have begun to outsource certain services to companies overseas in an attempt to cut costs. In this article we will look at the pros and cons of outsourcing overseas, along with some advice to help you make this very important decision. There are many critics when it comes to outsourcing overseas-critics who point out that the practice of outsourcing has the potential to devastate local economies-but when times are tough as they are now, businesses are faced with the dilemma of trying to meet customer and community demands while also trying to maximize profits. To do this, many of these businesses have opted to outsource both their production and certain administrative services overseas, taking advantage of cheaper labor with fewer regulations. Next we will take a look at the pros and cons of this type of practice. There are several advantages to outsourcing overseas, but perhaps the most glaring advantage is the enormous cost savings of using overseas workers for less-skilled positions. This savings in labor costs, especially for mid to large-sized businesses, usually equates to bigger profits and company growth. As for the consumer, they also will reap the rewards of outsourcing overseas, usually in the form of lower prices and a better buying experience. Proponents of outsourcing overseas believe that the practice can actually stimulate economic growth in the United States. Among the many disadvantages to outsourcing overseas, perhaps the most important is the loss of American jobs. When businesses have the option of outsourcing less-skilled positions overseas, it lowers the average American wage and forces workers to learn new skills and take on more responsibility for less money. Corporations feel the brunt of outsourcing overseas in the form of minimal product development, less control over the quality of the work and more potential liability. Outsourcing has long been a common practice for many large companies, especially in terms of their production needs, but recently even certain administrative tasks have started to be outsourced overseas in an attempt to maximize profits.
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