The Cons And Disadvantages Of Outsourcing

Outsourcing can be defined as contracting with a third-party, foreign or domestic, to provide the operations and responsibilities of a certain business function. The focus of this paper will be to provide insight into the reasons a business may consider to outsource, what changes outsourcing will implement onto the company, the advantages and disadvantages of outsourcing, and what problems a company may encounter when outsourcing. Many companies such as Apple, Dell, and Cisco rely heavily on outsourcing to maintain a feasible and ongoing operation. Examining these companies reasonings for outsourcing and the problems they face through this process will help lead to a better understanding of why a company may or may not choose to outsource. …show more content…
Factors such as the quality of the product (if poor), and the focus of the customer (if focus is elsewhere) may put a business into jeopardy or ruin the integrity and focus of the business’s product and/or mission. Most consumers base each purchase on cost and what they can afford, but most consumers also want quality products. Companies such as Old Navy and Walmart are companies that are known for their competitive prices, but are also companies that sell low quality outsourced products. These companies are more focused on turning a profit on products they can obtain for low prices and sell for more rather than focused on the integrity of their products and assurance of quality for their customers. These cheaply made products only last so long and consumer expectations for these companies may lower. Evidently, customers may end up turning to other stores to purchase their goods. People say, “You get what you pay for” and I believe it’s the same for companies who outsource. Quality can be achieved in products produced abroad, but it all depends on the type of quality the company is trying to …show more content…
These manufacturing plants open doors for more people to capitalize on job opportunities. When a company outsources with a third party in a foreign country, it will not only create jobs in the country, it will create a forward improvement on their open market, help facilitate trade with other countries, reduce unemployment, and increase the country’s gross domestic production. All of these factors shift aggregate demand and aggregate supply to the right implying an improvement in the country’s economy. If these manufacturing jobs abroad help improve economies overseas why don’t we instead bring those jobs over to