Term Paper On Pros Of Outsourcing:
The position that I intend to take will be for the US government to impose stiff penalties for companies that decide to outsource their operations overseas.
I intend to discuss the each of the advantages before disadvantages of outsourcing.
Diversification of Investment
Concentrating on the Core process rather than the supporting ones
Promotes Risk Sharing
Reduced operational and recruitment costs
Gain access to resources that are not easily accessed internally
Allows companies to take advantage of cheap labor overseas
Freeing up internal resources can give companies the opportunity to use these resources for other purposes.
Costs saved from outsourcing can be used to create a capital fund for companies
CONS of outsourcing:
Lead to the loss of jobs at the local and national levels
Weakens the economy
Tax laws are tightening
Loss of Managerial Control
Tied to the financial well-being of another company
Bad publicity and Ill-Will
Possible Threat to Security
Foreign labor laws can be an obstacle
Language barriers are also problematic
Although outsourcing helps companies to gain access to global knowledge and world class capabilities, companies should not transfer jobs offshore by outsourcing and manufacturing in a different country because outsourcing exports well-needed jobs out of the country and this practice by companies help to weaken the American economy.
Introduction and thesis statement:
"I will support legislation that benefits the American worker and prevents the outsourcing of American jobs." --Ed Pastor
The above statement reveals the attitude that many Americans have towards the issue of companies outsourcing work to foreign companies. This attitude is justified because there is evidence that proves that the outsourcing of jobs is connected to the weakening of the American economy. Nevertheless, there are at least nine benefits that can be had from a company outsourcing its job to other locations around the globe. On the other hand, there is a similar number of disadvantages that can be had from a companying engaging in this practice on the local and national level which will be explained in detail. Therefore, it can be argued that although outsourcing helps companies to gain access to global knowledge and world class capabilities, companies should not transfer jobs offshore by outsourcing and manufacturing in a different country because outsourcing exports well-needed jobs out of the country and this practice by companies help to weaken the American economy.
Please remember that this paper is open-access and other students can use it too.
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