Argumentative Essay on Outsourcing

The development of economy and technologies brings numerous advantages in our world. All of us enjoy the contemporary era of speedily evolving branches of life. However, we sometimes do not notice the other side of this medal. In recent period of globalization and multi-national expansion there appeared controversial phenomena – outsourcing. In couple of words outsourcing means moving resources to low-cost countries. Is it positive or negative? Let us try to think about merits and demerits of outsourcing.

Of no doubt outsourcing does have significant advantages. Great number of corporations has already accepted this policy of business and now faces numerous benefits. Transferring business functions may bring sound savings as business in low-cost countries is usually much cheaper than inside. Sometimes quality of final product or service may be reduced together with expenses, but the final quality-cost ratio appears more preferable.

According to the policy of competitive advantage such quality level reduction is not meaningful here. Recently more and more foreign employees get appropriate education and training in order to perform better quality results. Outsourcing also creates new jobs, according to Kripalani (2003). Developing countries like India or China benefit soundly from outsourcing as it solves serious problems of employment, education, wages, and as a result quality of life. Due to these advantages outsourcing is nowadays involved in various fields of business. It started in manufacturing, yet now it distributed to accounting, IT technologies, engineering, telemarketing, software developing, public and human relations, journalism, and many other areas. Hence benefits of outsourcing for corporations are obvious: low labor costs, increased productivity, opportunity of positioning onto international market.

Many economists and politics (like “left” parties) consider outsourcing a strategy harmful for national economy. They are not completely wrong. Outsourcing indeed has some certain disadvantages that make it much less preferable from definite standpoints. The major disadvantage of outsourcing is depriving local specialists of stable jobs. This aspect is very important to my mind. According to Reingold (2004), numerous American employees faced changes caused by outsourcing policy and suffered soundly from them. Being fired from their companies, many people stay unemployed, and this fact is scaring. Besides, quality level of outsourced services sometimes is too low. Moreover, the subject of security becomes more and more acute in the area of outsourced production. The issue of fraud is put under the spotlight now. Hence the disadvantages of outsourcing are: lowering quality, increased insecurity of business, and depriving domestic workers of jobs. Hence, outsourcing has both advantages and disadvantages, as any phenomena in contemporary business.

Reingold, J. (2004). Into Thin Air. Boston: Fast Company.
Kripalani, M., & Einhorn, B. (2003). A Tempest Over Outsourcing. New York: Business Week.
Kripalani, M., & Hof, R. Software: Will Outsourcing Hurt America? New York: Business Week.
Kerstetter, J. Move Over, India. New York: Business Week.

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