4.4 Discussion Outsourcing

4.4Discussion Outsourcing

DiscussionOutsourcing

Outsourcingrefers to the process of hiring other organizations or individuals toperform a service for your organization. The primary goal ofoutsourcing is to save on cost and gain expertise in the field.Outsourcing is popularly used by many businesses as a businessstrategy, and the main reason is to make the company competitive andfit in the current market. Outsourcing is, therefore, a validapproach because it helps businesses obtain expertise elsewhere withan aim of acquiring high quality services and goods. Second, throughoutsourcing the organization can reduce cost, for instance, the taximposed on the organization is distributed at different levelsdepending on the number of outsources. Lastly, through outsourcingthe organization can reduce risk. The risk is mainly financially,through outsourcing the business can share financial costs and in thecase of loss, the loss is equally shared by the organization andoutsources.

Outsourcinghas been widely used by many businesses, but the recent situation ofoutsourcing is the one done by Google-internet provider. Even thoughGoogle is worldly used, the company still outsource for expertise inorder to reduce cost. For instance, it uses Opera as an example ofoutsourcing.

Asituation that makes outsourcing ethical or moral is the example ofthe Amazon.com. The company uses international outsources, throughthis, the company not only creates employment in its country but alsoin other states. In addition, through this, the beneficiary countriesearn tax revenues taxed to the enterprise.

Despitethe many benefits of outsourcing, there are several risks associatedwith it. The risks of outsourcing can jeopardize the operation ofbusiness if not controlled. These risks include possibility of abusiness losing control since the vendor controls everything, theorganization is responsible for any mismanagement did by the vendor,and outsources do not give assurance of a perfect job and success.[ CITATION Sac10 l 2057 ].

Reference

Sachdev. (2010). Business strategies for satellite systems. Boston: Artech house works press.