The Benefits of Offshore Outsourcing Essay - 974 Words

If offshore outsourcing has such a negative impact on the economy, then why are businesses practicing it? Is it just because of greed? Actually, offshore outsourcing can promote economic growth in some ways. First off, what exactly is offshore outsourcing? Simply put, offshore outsourcing is a business tactic where a company sends a part of their service to another country to be run by a different company. Offshore outsourcing has been seen as a negative business tactic. However, it affects the economy in some positive ways, such as it fuels business competition, it helps business growth, and it opens up new and different types of jobs. One effect of companies’ use of offshore outsourcing is that it fuels business competition,†¦show more content†¦Another effect of offshore outsourcing is that it encourages business growth. Business growth occurs because resources are freed up to be used to improve the company’s products or services. John Miller writes that the only difference between American workers and offshore workers is that the offshore workers get paid much less (Miller). If an employer can save money by using offshore outsourcing then it is beneficial to do so because it leads to business growth. Like Miller, others might say that all businesses gain from offshore outsourcing is labor savings. However, labor savings is far from the only way that businesses benefit from offshore outsourcing. Pete Engardio, Michael Arndt, and Dean Foust claim that by using offshore outsourcing businesses are increasing in areas of quality, productivity, efficiency, and profit (Arndt, Engardio, Foust ). This is important because it encourages the consumer to keep buying those businesses products or services. Business growth is an important effect of offshore outsourcing, because it brings about improvement in business function and provides cheaper and better products or services to the consumer. The last major effect offshore outsourcing has is that it brings about new and different types of jobs. The short term effect of offshore outsourcing is the loss of jobs onshore. However, Daniel Drezner believes thatShow MoreRelatedOutsourcing : Outsourcing Of Outsourcing Essay1307 Words   |  6 Pages1. What is BPO Business Process Outsourcing? BPO is a subset of outsourcing that involves subcontracting of various business-related operations such as accounting and customer service to a third party. The global BPO industry is estimated to be worth more than US$952 billion and is forecasted to experience strong growth between 3.5% and 7.6% CARG as can be observed in Figure1. BPO is often divided into two categories: a. 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