Advantages and Disdavantages of Outsourcing Essay

2231 Words Mar 9th, 2013 9 Pages
Advantages and Disadvantages of Outsourcing for Outsourced Employee
Iman Nuraprianto
GLS 470 – 12TW1
Jennifer Zoller
Southern New Hampshire University
December 8, 2012

Abstract

Outsourcing is contracting with an outside party (vendor) to do a particular function. Basically, the function being outsourced is considered non-core to the business. This paper explores the advantages and disadvantages of outsourcing for outsourced employee. The advantages of outsourcing are more experiences, opportunity to get expertise in particular job, and manageable time & planning to the next job. In contrast, disadvantages of outsourcing are low salaries, poor employee benefits and uncertainty for continuing job. This paper
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In 2009, Business & Finance Magazine reported that companies that implemented outsourcing in The United State have saving their human resources cost of 18% (“Cut costs; increase productivity”, 2009). In the word of Sharad, outsourcing industry has changed economics of many countries; this industry is based on a simple fact that, by outsourcing, companies can drastically reduce their costs and in turn earn more profits (2011). It is very clear that the major motives of company use outsourcing are to reduce cost and to increase profits. Outsourcing is a strategy of the companies that related with their human resources function. The Companies are using outsourcing to aim their goals. However, this implementation is not only affecting to the company but also to the employee, especially for the outsourced employee itself. Are there advantages and disadvantages for outsourced employee? This paper will discuss the effects for outsourced employees both positively and negatively.

The Advantages of Outsourcing for Outsourced Employee

As mentioned in previous page that primary reasons of outsourcing implementation is to reduce operational cost by the end to increase profits for the employers. Some people argued that outsourcing is for employer benefits only, but it is not for the employee. In other words, outsourcing is used only for employer profits at the expense of the employee. However, there

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