The costs associated with production and business performance have forced many companies to engage in outsourcing. Asatiani et al. define the concept as the process of recruiting a third-party employee or service provider to complete various tasks or manufacture goods that can eventually be marketed by the identified company (41). This process has emerged due to the unavailability of labor, increased production expenses, and the favorable conditions associated with globalization. The party that “outsources” is an individual or company that does not want to complete the intended tasks. The “outsourced” party could include any individual or firm operating overseas, experienced in a particular area, and capable of charging reasonable costs. The major driving forces behind outsourcing include the force of globalization, cost of production, labor issues, and the problem of unionization (Noronha et al. 623). Through globalization, companies have mastered the art of relating with foreign suppliers and consumers.
This opportunity has promoted a new wave of outsourcing that serves many companies and takes them closer to their business aims. However, such a trend remains disadvantageous because it has negative implications on local economies. Some Americans have been rendered jobless due to such a process (Noronha et al. 623). More companies are outsourcing various services to overseas firms since they charge cheaper and deliver products promptly. For example, Apple is known to outsource assembly services for its leading devices from firms in China (Majanoja et al. 31). Many corporations in developed countries target destinations with emerging technologies, such as India and Pakistan. This trend reveals that many Asian countries are benefiting from the process. Outsourcing is, therefore, a global phenomenon that could be termed as a necessary evil. Because of it, many people can access jobs and improve their lives while more companies can pursue their goals efficiently.
Works Cited
Asatiani, Aleksandre, et al. “Uncovering the Nature of the Relationship between Outsourcing Motivations and the Degree of Outsourcing: An Empirical Study on Finnish Small and Medium-Sized Enterprises.” Journal of Information Technology, vol. 34, no. 1, 2019, pp. 39-58.
Majanoja, Anne-Maarit, et al. “Developing Offshore Outsourcing Practices in a Global Selective Outsourcing Environment – The IT Supplier’s Viewpoint.” International Journal of Information Systems and Project Management, vol. 5, No. 1, 2017, pp. 27-43.
Noronha, Ernesto, et al. “Globalisation of Commodification: Legal Process Outsourcing and Indian Lawyers.” Journal of Contemporary Asia, vol. 46, no. 4, 2016, pp. 614-640.