Outsourcing Research Paper On Outsourcing

904 Words May 17th, 2016 4 Pages
Outsourcing Research Paper
“If you deprive yourself of outsourcing and your competitors do not, you’re putting yourself out of business” --Lee Kuan Yew (6 Quotes). Although outsourcing appears quite straightforward in this quote, the topic is surrounded by a cloud of controversy largely regarding ethics. Outsourcing refers to obtaining goods or services from an outside or foreign supplier in place of an internal, usually more expensive source (Merriam Webster). Having gained much popularity in recent years, outsourcing currently accounts for one of the most widely practiced business strategies in the country, which pressures emerging businesses to conform. Outsourcing presents both positive and negative aspects for businesses and the economy.
Outsourcing allows companies to remain competitive in their industry and improves the economies of both the home and foreign countries. To stay competitive and relevant in their industry, businesses often choose to outsource. Because the workforces used for outsourcing are primarily located in less developed countries with less labor regulations, companies can pay these workers significantly less than domestic wage costs in the United States, which allows the companies to save money. Consequently, companies can divert more attention and resources to other areas of their business that require improvement, such as product design and marketing (Hagerty). Essentially, outsourcing allows businesses to gain an overall financial strength that…

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