Outsourcing

There are many positive reasons why a company would decide to outsource certain functions. Some companies choose to outsource for the convenience and others for the cost benefit. A company must also take into to consideration the negatives and decide what is best for the company before it decides to outsource.

Globalization is one of the main reasons that lead a company to outsource. When talking about globalization, other countries can perform certain tasks cheaper than if they were performed in the US. "Outsourcing can be economically healthy and acceptable. This practice has led to job growth and profits for US Organizations that provide services such as, legal work, Information Technology, banking, consulting and customer service. In order to be effective, managers should understand how globalization impacts their domestic operations and influences the effective management of their human resources around the globe"(Ivancevich, pg113). When a company decides to outsource globally there is much responsibility that is involved with that task. It is important that the company performs its research as to how to successfully outsource to that particular country. One challenge may be customs and work ethic. A company must fully understand the new country.

Another reason to outsource is for a company to not only save money, but to have the convenience of not housing certain departments or functions inside their company. “Outsourcing, sometimes called “staff sourcing” involves paying a fee to a leasing company or professional employer organization (PEO) that handles payroll, employee benefits, and routine Human Resource Management functions for the client company” (Ivancevich, pg 201). An example is that a small organization that might not be able to afford an HR department can outsource the functions it needs for less cost. The organization needs to be cautious of the quality of company that it chooses though. Outsourcing can also give independent contractors the flexible schedules that they might need.

Outsourcing can also redirect the company’s energy and personnel to the major functions that need to be performed. You can save on training cost because if the position doesn’t exist, you do not have to worry about it. It can relieve some of the burden that some mangers might feel and you can maintain your company’s infrastructure if you are only focusing on certain functions. be

American workers can benefit from outsourcing if tedious repetitive tasks are outsourced allowing for them to focus on more interesting tasks. “A more enlightened, strategic