Outsourcing jobs Essay Example | Topics and Well Written Essays - 1500 words

Outsourcing jobs - Essay ExampleOn the downside, some of the negtives include difficulties in mintining confidentility, retining control, nd confronting trnsition problems. In the following pper I will be exmining the dvntges nd disdvntges of outsourcing jobs from the view of the benefit to the orgniztion.appointment various functions, such as accounting production, security, maintenance, and legal bring in to outside organizations. (Nickels, McHugh, McHugh, 257). Outsourcing (or contrcting out work) strted in the mnufcturing business in the erly 1980s, primrily s mens of cutting bck stff nd sving on wges. Often tsk is considered for outsourcing if the work performed by consultnt would require hiring dditionl stff if it were done in-house. In ddition, work hndled by former employee who my perform specific value is lso considered s outsourcing. The decision to outsource is minly bsed on cost, set-up time, nd the vilbility of expertise (Blxill, Hout, 95). ii primry fctors hve cu sed the job mrket to tril the generl economy wekness in mnufcturing nd stellr productivity performnce cross ll mjor sectors. Mnufcturing hs suffered through pinful djustments to over investment, previously strong dollr, nd the migrtion of cpcity overses. Menwhile, lthough rel GDP (gross domestic product) hs expnded t n impressive rte of bout 3.5% over the pst two yers, helthy productivity gins--including red-hot rtes during the second nd third qurters of 2004--ment tht mny compnies sw little need to dd to their workforces (Minoli, 54).Estimtes of the ctul number of jobs outsourced overses re sketchy. Grtner Inc. contends tht bout 500,000 jobs in the technology sector could be sent brod over the next two yers, which would mount to still moderte 5% of the totl 10.3 million workers believed to work in the technology sector. Deloitte Consulting predicts tht s mny s four million service jobs could be out sourced over the next five yers, which would still mount to only bout 3.5% to 4.0% of the totl U.S. service sector. In mny cses, these jobs might hve been filled by foreign immigrnts or by firms buying entire offshore fcilities. The free flow of lbor nd cpitl is vitl to helthy globl economy. t the sme time, prt of ny increse in foreign in dumbfounds should come bck to the United Sttes in the form of either new purchses or investment (Minoli, 56).Mny jobs cnnot be exported overses. Fce-to-fce contct with customers remins vitl, locl control is often integrl to the mngement process, nd logisticl nd security concerns my require domestic loctions. Indeed, finncil institutions need to drill specil cre to insure ginst identity theft for their customers. djustment is never esy, but mericn workers hve demonstrted their flexibility nd responsiveness to chnge over the pst two decdes. Our competitive dvntge will continue in fields requiring higher(prenominal) skills nd knowledge. This is why employment mong college grdutes hs expnded by over two million jobs in the pst yer nd why the jobless rte mong these more educted workers is only round 3.0% (Gntz, 41).s the recovery mtures, look for job harvest-tide to show further improvement over the next severl months. resumption of higher cpitl spending, more competitive dollr, nd rebuilding