Sunday, February 1, 2009

outsourcing by miroslava pavlovich : )

what is outsourcing? Companies will outsource for different reasons. Outsourcing is generally lower costing than hiring and training people for an in-house IT department; the company might have limited resources. Also outsourcing companies are very specialized and have more knowledge about the industry. As for the olittlewood post: quality outsourcing companies will be wary about who they hire and the impact it has on company-client interactions. Outsourcing can be a beneficial tool for businesses in the short term and long term. Short term it allows them to cost cut; long term it allows for the company to focus on core business functions.

i think that outsourcing is really good for the countries because it has cheaper imports and stronger markets for exports. The countries save a lot of money, fpr example the cost of direct labor for machinery production typically is 15 percent of the selling price of the product. So, even if you replace a worker in Massachusetts working for $20 an hour with a laborer, say in Poland, at $5 per hour, your savings on the bottom line will be 11.25 percent, at least on paper. Its obious that you are saving money but at the same time you are losing it for example there will be loss of productivity, at least initially, and finally you have to expect at least 2 percent of shipping expenses when repatriating the foreign-made parts plus perhaps up to 5 percent import duty. This does not account for the extra inventory you have to carry to cushion for unforeseen delays in deliveries from abroad.

So outsourcing is a ver hard subjet to argue about. Im in favor of outsourcing because the state is saving money and at the same time is helping the other countries to have jobs and to have a better economy. It also depends on where you are standing because for example if you live on the United States you are loosing some jobs but at the same time you are having more stuff for cheaper prices and if you are in Mexico we are gaining too because is more jobs.

http://seattlepi.nwsource.com/business/205207_outsourcedebate27.html

2 comments:

  1. Well,I also agree with you in the point that this factor is something that will help the country and also the people becasue it saves some of money, and right know in the situation we are presenting know a days we need some kinds of methods for us and most of all companies, becuase they are a high sources of money and if they can make some changes even though they are minor they can do something.

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