Outsourcing and the Global Environment

Outsourcing and the Global Environment

Abstract

The following paper will detail the impact on businesses concerning outsourcing and the global environment. This paper will outline the needs of the modern business to embrace the concept of outsourcing and the need to educate employees on the diversity of global business practices.

Outsourcing

The need of the modern business to look outside of the doors of the company to improve profit margins has become a necessity in today’s market. The advent of technology and crossing of borders have expanded this search for efficiencies to other countries.

There have been great strides made in the global market to outsource various segments of businesses. One of the biggest gainers in this arena is India. India has been capable of handling several procedures handled by companies such as the customer service phone calls and technical support calls for industries such as Dell computer.

Company outsourcing is often met with extreme resistance from within the country. The first form of resistance arrives in the form of the notion that outsourcing automatically means that a US employee is going to be displaced. This is not always the case. There are often enough jobs to be sent overseas at a reduced cost avoiding the need to hire more domestic employees.

The issue of displaced employees is one of concern and needs addressed. The employee that may be displaced by the outsourcing of company efforts often may be retrained or transferred to a different area. These employees are often underemployed and will be better used in other arenas.

The last, often unaddressed issue, of outsourcing and displaced American employees is that of the overpriced employee. The public has become complacent in the fact that no one else will compete for jobs. Unions have overpriced their employees driving the company to look elsewhere for suitable replacements. This attitude of inherent job protection from outside sources has actually drove companies to outsource.

The savings associated from outsourcing by the companies are significant. This savings will reduce as more companies send jobs overseas. The countries will become savvier at negotiating an equitable wage for their employees and the cost will go up. At this current time companies are able to capitalize on the countries being willing to perform work for very little pay to get the business but this will not always be the case.

Global Awareness.

Companies must educate not only there employees but the public when it comes to the subject of outsourcing. There are a variety of subject that the employees of a company should be aware of when business is being conducted abroad. Customs and culture are one of the biggest items that must be addressed in conducting business.

What was considered taboo in the United States may be an accepted and often expected practice in some other countries. For instance in some countries it is expected to bribe officials and acceptable form of business. This would never be tolerated in the United States but is an every day occurrence in other countries.

The issue of different cultures and the work attitude is another important aspect that must be considered by management when globalization is involved. What is considered the norm in the United States is often not applicable in other countries. For instance the United States has a variety of safety regulations and