Essay: Outsourcing products and services

Sample Essay

In conclusion, outsourcing both inshore and offshore has been shown to be an important business tool in the corporate world. It brings in various benefits to both consumer and manufacturer. The decision to engage in outsourcing has to be approached with care and many factors must be considered. The company must take into account the benefits and shortcomings of outsourcing to gauge whether it is viable solution.

However, despite its disadvantages outsourcing does provide a better return especially as a firm gets larger. There are certain tasks that a firm must outsource to maintain its competitive advantage. The firm should seek to outsource services that it deems not advantageous to it when compared to its competitors. Outsourcing is also unavoidable for even a sizeable company especially for long term planning. Even a small firm will for example have to get an external auditor to verify its books so that it can make plans for growth in the future. Thus outsourcing will become unavoidable as the firm grows larger.

In my view, the debate over offshore outsourcing does elicit strong emotions in the U.S. shown by how it pits workers, politicians, economists and trade unions against each other. However the benefits of outsourcing both domestic and foreign to the U.S. economy far outweigh the shortcomings. There is no single corporation (conglomerates included) that is self sufficient. The company must utilize the services of others for it to remain competitive.

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