Outsourcing Outsourcing And Outsourcing - 1840 Words

Outsourcing, and in particular offshore outsourcing, is absolutely necessary and helps our country s economy. Outsourcing helps a company focus on those things it does best and hence increase its top line revenues while reducing costs. Outsourcing has provided organic growth to the United States corporations and enabled them to compete more effectively in global markets. This paper seeks to explore what outsourcing is, what the difference between outsourcing and offshoring is, what effects it has on individuals, firms, countries and the world as a whole, the controversy surrounding outsourcing, trends of outsourcing and the necessity for it. Outsourcing refers to sending any type of work that a business would otherwise be completed†¦show more content†¦For example, Wyeth Pharmaceuticals outsourced its clinical-testing operation to Accenture Ltd. in 2004 (Engardio, Arndt, Foust, 2006). Even the local city and state government also outsources services like infrastructure to build roads, toll booths, and health care, trash and snow removal. Outsourcing can free up government agencies to focus on strategy, planning, and core functions they perform best and governing the people. Outsourcing is more prevalent than you might know, and it is very vital to our economy. Offshoring or offshore outsourcing is the relocation of a business process from one country to another. For example, a business in the US could outsource work to a contractor within the US which is outsourcing. If the business instead outsources the work to a foreign contractor like in India or the Philippines, it is called â€Å"Offshoring†. While outsourcing is used to access contractors with advanced skills locally for short term projects or to speed-up the projects for completion, offshoring is used basically to reduce the cost than in-house staff for a task or a process. Firms offshore anything that could be from simple customer care to more critical operations like research and development (RD), total information technology (IT) management, and new product development. Even though these may seem like core competencies, some firms still outsource them, so