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Advantages and Disadvantages to Outsourcing
Jordan Tuohey
Misericordia University
Summary
Outsourcing can be when suppliers use diverse companies for many parts of the production process. The work can be provided for other companies as well as to different countries. There are many advantages and disadvantages to outsourced workers. An example of one of the advantages of freelancing would be which it makes the rates cheaper in the United States. An example of problems with or maybe a disadvantage of outsourced workers is that it reduces the amount of jobs in america. People claim whether or not it is good for our economy and that will always be discussed additional.
Michael Tuohey
Mr. Jones Sweetz
COACH 205 Macroeconomics
22 November 2014
Benefits and drawbacks to Freelancing
Outsourcing is usually when a business gets a great or service from anywhere other than themselves. They have many ways of doing this kind of. They can use a unique company for a part of the production process. A new way of outsourcing techniques would be concluding their U. S. industries and moving them to other countries, including China or perhaps India. There are a few different reasons as to why a small business would delegate, but the main reason is to cut costs so the product can be sold for less costly. This is required for many industries and it includes many positive aspects, but with all those advantages come many drawbacks.
The first advantage to freelancing would be the amount of cash that it could save the organization that decided to outsource anything. When the work is delivered to another organization it is usually mainly because that organization most likely makes something more proficiently and it can be bought from them cheaper than in the event the business were to produce that themselves. In the event the work is definitely sent international there are many items that can conserve the business money. Work delivered overseas is often sent to countries much less created that the United States. This means that you will discover less laws and regulations about creation. The most notable difference is what the employees are paid. Chinese employees for example , will be paid a fraction of a minimum income worker in the usa. This is a huge money saver for businesses. One more big difference is in the regulations, many noticeably happen to be environmental rules. Factories in the us usually have to shell out a lot of money to manage the polluting of the environment the factory would make, depending on what producing. People say that sending jobs abroad is awful because it minimizes the number of job in the United States, but the money salvaged creates jobs so it is quite a bit less bad because the people who have say this kind of think. With these two things by itself outsourcing in order to countries conserve a business a lot of money.
Another advantage would be that the organization can concentrate on things like creating newer, better products and selling them. This really is much easier when not doing certain areas of the production method, because they can have individuals that normally, can be doing points with the industrial facilities, help with fresh designs as well as the marketing of these designs. A good example of an organization doing this can be Nike. They will sent the production of all many, which are things such as shoes, clothing, and sporting activities equipment, international to China. Now that they do not have to go over the production procedure as well they may be putting almost all their effort in to design and marketing. Apple is doing the same thing with their hardware for their electronic devices (Pearlstein). This is the most popular way to improve focus, since it allows them to put much more focus in the design and market without a bad reduction in the quality of the merchandise.
Another thing that outsourced workers does well is reduce overhead. Everyone these days to businesses and it is a big reason why numerous businesses are mailing parts of or even the entire creation process anywhere else. Overhead is actually the cost of operating the business. Issues such...
Mentioned: " Outsourced workers Policy. " Economics of Outsourcing. Internet. 23 November. 2014..
Overby, Stephanie. " The Hidden Costs of Offshore Outsourcing techniques. " CIO 1 September. 2003. Print.
Pearlstein, Steven. " Outsourced workers: What is the True Influence? " Wa Post you July 2012. Print.
" The Advantages and Disadvantages of Freelancing. " Level World Alternatives. Web. twenty-two Nov. 2014.
Weidenbaum, Murray. " Outsourcing Is a Good Factor - Generally. " USA Today 1 May 2004. Print.
