Essays on Outsourcing and Offshore Outsourcing - Advantages and Disadvantages Essay

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The paper “ Outsourcing and Offshore Outsourcing - Advantages and Disadvantages” is perfect example of the essay on human resources. Outsourcing and offshore outsourcing are two business practices which have in the recent past been used by much business organization owing the numerous benefits associated with them. Outsourcing and offshore outsourcing involves the contracting of other business organizations to provide services and products to the company instead of the company carrying out the operation by itself; hence in this way, the organization benefits from the benefits associated with outsourcing (Tadelis 2007, p. 261).

Some of the industries which are characterized by a lot of outsourcing practices are the information technology and manufacturing industry. Looking at the market, it is appropriate to conclude that more and more companies are embracing outsourcing in their business practices due to the various benefits associated with it. For instance, modern companies are contracting other business organizations to provide catering, cleaning, transportation, customer care, Information technology, and production of specific products/components to them. This is due to the advantages of outsourcing which will be discussed in this essay. Equally so, the paper will also discuss the disadvantages of outsourcing.

The following essay will show why outsourcing is good, by comparing the advantages and disadvantages of the business practice. Outsourcing is the contracting of specific services to an external service provider. On the other hand, offshore outsourcing is the contracting of services to an external service provider located outside a country; hence the name offshore meaning abroad (Weerakody & Irani 2009, p. 615). Ideally, the firm to which specific services are outsourced is normally competent in providing such services; hence companies always outsource services for which they need expatriate intervention.

Some of the examples of services that are outsourced are given above. In an outsourcing agreement, the outsourcing firm and the firm in which provision of services are outsourced enter into a contract that defines the terms of engagement.

References

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Kathawala, Y., Zhang, R., & Shao, J., 2005.Global Outsourcing and its Impacts on Organisations : Problems and Issues. International Journal Services Operations Management, Vol. 1, No. 2; pp.185- 201.

Michela, P., & Carlota, M., 2011. Outsourcing Strategies. How To Formalize And Negotiate The Outsourcing Contract, University of Oradea, pp..276-286

Ordoobadi, S., 2003. Development of a Decision Model for Strategic Outsourcing, University of Massachusetts-Dartmouth; pp.1-18

Pouder, R., Cantrell, R., & Daly, J., 2011.The Impact Of Outsourcing On Firm Value: New Insights. SAM Advanced Management Journal, Vol. 1, No.1; pp.1-11

Song, C., Lee, S., & Lee, E., 2011. Outsourcing Frontline Functions And Implications On Customer-Oriented Behaviors: A Case of Telecommunications Company and Its Partners in South Korea, Journal of Management & Organization, Vol. 19, No. 1; pp.1-10

Tadelis, S., 2007. The Innovative Organization: Creating Value Through Outsourcing, California Management Review Vol. 50, No. 1; pp. 261-279.

Tambe, P., & Lorin, M., 2010. How Offshoring Affects IT Workers, Communications of ACM, Vol. 53, No.10, pp.62-70

Weerakody, V., & Irani, Z., 2009. A Value And Risk Analysis Of Offshore Outsourcing Business Models: An Exploratory Study, International Journal of Production Research

Vol. 48, No. 2; pp. 613–634

Wee, H., Peng, S., & Wee, P., 2010. Modeling Of Outsourcing Decisions In Global Supply Chains. An Empirical Study On Supplier Management Performance With Different Outsourcing Strategies, International Journal of Production Research, Vol. 48, No. 7; pp. 2081–2094

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