Outsourcing Is An Important Tool That Organization

Outsourcing has become an important tool that organization are taking advantage of more in this age of technology. It allows for a company or organization to select a partner or source to move a portion of their business to that usually has expertise in that area. It is a option that is being utilized by organizations in many countries. Outsourcing is a tool that enables organizations to gain some levels or competitive edge in their industries. It also allows organizations to obtain some price breaks and take advantage of good and services for cheaper rates. Outsourcing to low labor countries allows organizations to truly take advantage of reduced rates for labor but at what cost? This is a very controversial practice because this normally occurs in countries that have very lenient child labor laws. Outsourcing abroad in low labor countries opens the doors for the exploitation of residents in these countries. There are con’s and pro’s to the option of outsourci ng. Organizations that choose to outsource are making the decision to displace their current workers. These were jobs that were once worked by people in the organization and now they are not faced with the dilemma of unemployment due to outsourcing. Outsourcing allows the organization to now eliminate the cost of handling payroll. In many instances, former employees are given the option to work for the company that has secured the contract but at lower rates and possibly reduced benefits or not benefits.Show MoreRelatedAdvantages and Disadvantages of Being a First Mover975 Words   |  4 PagesAdvantages and Disadvantages of being a First Mover: The timing of entry to a particular market or industry is usually important because it helps in determining a companys returns on investment. First movers are described as the first entrants to offer or sell a new product or service category in a particular industry. 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