Outsourcing is a controversial topic in the American business world. On one hand, it is difficult for businesses to achieve excellence in their industry without offshore outsourcing. There are also risks and downfalls that can occur when involving a different culture and society. Diverse companies have different uses of outsourcing, which enable them to utilize the offshore, less expensive outsourcing.
As O’Sullivan states, almost all big industry businesses are not asking the question if they should outsource, but what departments they will utilize to be outsourced (O’Sullivan, 2008). This implies that there is a high demand for outsourcing jobs that would otherwise be a financial burden on companies without the capability and proper knowledge on how to outsource. This is emphasized in Computer Worlds article as it explains that cutting costs is the primary goal of outsourcing, but performance should be the ultimate goal. It also stated that companies that focused on performance found their outsourcing cut more cost than those that were just concerned with cost reduction (Weiss, 2007).
Take an over simplified business transaction for example: If I pay two jr. high kids to sell lemonade for me. I would give one teen all the ingredients and tell him nothing but a price at which to sell the lemonade and trust him or her to make a quality drink. The other teen I would give strict instructions on how to combine the ingredients and to make signs leading up to the destination, or lemonade stand. As well as the information given to the first youngster. This would obviously result in better overall performance and make more money for his or her share in the revenue created. In relating this to outsourcing, it would ultimately end in the business, myself, making more disposable income. However, if there was something wrong with the stand and the teenager did not report this to me, it would result in the Mum effect.
According to Ramingwong and Sanjeev,...