Outsourcing : A Business Strategy For Companies Essay

1483 Words Nov 30th, 2014 6 Pages
The Merriam- Webster Dictionary defines outsourcing as sending away some of a company’s work to be done by people outside the company. Outsourcing has been a controversial topic in the U.S for years now. In the world we live in today, organizations are forced to look for new ways to generate value due to increasing competition. While outsourcing is great for companies it is a nightmare for the average American worker due to the fact that factory jobs are being lost. Even though outsourcing takes away from American jobs, economists believe that the economy benefits more from trade then lost jobs. In the end outsourcing has many benefits because it yields cost savings, provides flexibility and reduces the overhead cost. The idea of outsourcing has started in America as early as the mid-1770s (Roberts, 2010). Ever since then, it has become a business strategy for companies because it makes businesses more productive by cutting costs and hiring cheap labor. Outsourcing in the end minimizes costs and increase profits. With today’s technological advances and many ways of communication, companies are outsourcing their business more than ever. According to Paul Roberts, who during the Regan administration was Assistant Secretary of the Treasury said, “The offshore outsourcing of American job is a greater threat than terrorism” (Roberts, 2010). Outsourcing benefits the business and the world in many ways; it helps improve globalization, which in return is helping almost…

Related Documents