Outsourcing Research Paper
Summary
The paper under consideration discusses the issues related to such global phenomenon as outsourcing. The outsourcing has resulted out of the globalization of the trade and services. Nowadays number of companies prefers to outsource their operations to the third world country, which provides them with the opportunity to minimize the costs associated with the manufacturing or servicing. The experts assert that the US manufacture is frequently imported overseas. The outsourcing, as a result, improves the resource management, the process capability, flexible schedule, natural material exploitation etc. The outsourcing refers to the variety of processes including the administration, customer service, the transportations, real estate services etc.
The paper also discusses the aspects of the outsourcing to the Asian countries. It is stressed that many tools and accessories are nowadays assembled in China and other Asian countries. Moreover, these countries are known for having hard-working and competent citizens ready to work for lowered salaries when compared with the US citizens. Also, the costs associated with the details and tools are lower in China than in the Western countries. In terms of employment activities, the employees in Asian countries are less protesting and, thus, they are easier to control and exploit at no costs to reputation and brand.
The disadvantages of the outsourcing refer to the cultural, social and legal differences that exist between the company and the country of entry. Moreover, the companies frequently experience the linguistic barriers, which might contribute to the incorrect decision-making. The issues related to the control over the operations as well as the quality control are also rather significant for the outsourcing companies. They lack the skillful and initiative managers, especially in the Eastern countries.
The globalization and outsourcing also largely concerns the care. The paper notes that, again, the expertise of the citizens of the countries other than US is sufficient for the US based companies. As a result, many of them prefer to employ the immigrants and outsourced workers who deliver medical services to the clients. The economies of scale associated with the labor of the outsourced workers contribute to the creation of the competitive advantages of the companies.
The paper also discusses the recommended way of actions for the managers of the companies that has made the decision to outsource. First of all, the managers have to ensure or, at least, maximize the similarities between the country of entry and the company. Otherwise, the company will have to undertake numerous efforts in order to minimize the negative consequences of the cultural clashes that will eventually occur. The managers are also recommended to check the legal requirements regarding the employing of the personnel by the foreign countries and the legal instruments that exist to fulfill that purpose. The owners of the company should also select the top managers that will be responsible for the state of affairs in the country of entry and who will also guarantee the quality of the operations and products developed there. The knowledge of the current economic and cultural trends and affairs …
