Research Paper

Outsourcing　Lead　The　Way To Success
Industry has changed rapidly in recent years. The structure of the companies grows to an efficient way to gain more profits and provide high service to the society. Thus, that’s the reason more and more companies tend to outsource. Outsourcing deeply affects the big companies. It has became a global useful method among the most companies. According to Whitney(2004) “Outsourcing can have significant economic value to the enterprise. Many strategic business drivers encourage learning organizations to outsource specific functions.”(para.1).This is because outsourcing has created more benefits to the companies. To sum up, outsourcing can reduce costs, provide high level quality products to the customers, focus more on the core business products and promote other countries development.
Outsourcing is “Outsourcing is contracting with another company or person to do a particular function.” ( n.d.para.1). In general, companies decide give their part work of the products or service to other small companies which have special ability in a particular field. As a result, the companies receive ideal high quality products and good service. In the past, during the 1800s and 1900s, most companies were integrated organization. They established their company, produced the products and controlled the all lines of the process. In1980, most organization began to outsource for the reason that they did not have competency internally, and they do the outsourced work just located in the same countries. In contrast, in 1990, a wave of big companies decided to outsource for the sake of cost saving by distributing to other over labor countries. In addition, they wanted to focus on their core business. Nowadays, the trend of outsourcing moves to the information technology(History of Outsourcing, n.d, para.1.).For example, more companies in U.S outsource software and call center to other countires. However, there are always some people from government against the outsourcing because the companies are easy to lose their new technology or original idea. On the other hand, most of the companies still make good use of outsourcing's benefits.
The first advantage of outsourcing is that it can reduce the expenditure of a company. This is a major factor for most of the companies. Advanced equipment is important to produce the high quality products. On the other hand, it is also a large expense for a company. If company find way to outsource non core products to others who already have these facilities, it is wise. For example, Pepsi company can outsource their package work to other companies who have specialized in producing good package of products facilities. In this way, the companies can not only get beautiful package for their product but save lots of money for the non core equipment. Moreover, it also can save the the labor cost. “the movement of U.S. jobs overseas due to cheaper labor costs.”(Kiker, 2004.para.2). Company capital is the most important part. Outsourcing can realize their desire to save cost.
The second advantage of outsourcing is that it provides extremely high level quality products or service to the customers. If the companies are not expert at their one part of their process, they outsource to other people who have extraordinary talent for it. For instance, ooutsourcing device manufacturing to other countries has become increasingly popular in the last several years. According to Gross.&Heinold(2005), “significant improvements in Chinese manufacturers’ sophistication, technology, and—most importantly—product quality have made China much more popular for medical device OEMs.”( para. 2). This means that with the development of other countries, advanced technology is not only in developed countries. In addition, other countries such as Indian and some southeast Asia are the places that gather with good working lines. Therefore, many firms believe that they can make good use of outsourcing to supply good service to the customers.
The third advantage of outsourcing is that the company can focus more on their core business. In” The 10 Most Powerful Words in Outsourcing “ the author,states,” By outsourcing non-core specific functions to an outsource provider, the business entity then can go back to what they do best-their core business.” (n.d.para.3). To a competitive firm, time and money are so important for them. Company can do more efforts on core products by searching new idea through outsourcing. According to Meryl (2006)” increased focus on their core business, those that have made innovation part of the process have seen the greatest rewards.”(para.6). Innovation makes company success. For this reason, putting their non-core tasks to others counties instead of the energy and thoughts to do more important things. It is sure that they do more work on their core business will have more chance to win other companies.
Finally, outsourcing can help other countries develop quickly. Most of the
products and services which are outsourced are not high knowledge things. So
they do not need good educated employees. According to the article,” Microsoft
Plans to Outsource More, Says Ex-worker” the author says that”Microsoft
continues to hire thousands of new employees a year in Redmond, but the pace
of hiring has slowed. Simultaneously, it has increased work in China”(Dudley,
2005, para.6). Low rate employment can gradually disappear in some area.
Except China, many people in Indian Russia also get job due to outsourcing. In
“Prudential angers unions by outsourcing more jobs to India” the author says
“Prudential is one of a number of UK firms to outsource a large part of its back-
office and call-centre operations to India and employs almost 4,000 people in
Asia.”(2006, para.8). Therefore, our global economy develop so fast through outsourcing.
However, the opponents argue that companies may lose their new technology out to other countries. This is not true. What companies outsource are the low-tech tasks. Company will develop more their new technology products and create profits at last. Jeffrey(2004),writes “While low tech jobs are going to India, the Indians are performing these jobs on equipment made in the US, and their newfound wealth is being spent on US exports.” (para.8). Moreover, company can have more competitive opportunities by outsourcing. Quittner(2006) states that ”Offshore outsourcing has become indispensable to many U.S. banking companies in the last decade as they strive cut information technology cost and stay competitive.” (para.1). Through outsourcing, companies today gradually try to get forward new vision of their goal. They do more innovation to our world living life.
In conclusion, outsourcing has proven to benefit not only companies but the whole society. It also changes the way we work. Now more and more companies tend to outsource towards IT field such as software, call-center and web application. As a result of this strategy, many large firms which most locate in United States find out that there are more advantages to outsource because it will save the cost , prove high quality products to the customers, have more energy on the core business and create more job chance to other countries. It is obviously seen that they go far out to the world. To sum up, companies should expand this strategy.
















Reference

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