This archive report was first published on 13 January 2020.
What is Outsourcing? ¶
Outsourcing is a business activity where companies hire other companies to perform some of their business functions. This can include tasks such as human resources, content creation, and manufacturing.
According to Investopedia, outsourcing is a common practice in the US, especially with the rising local unemployment rates per state and rampant poverty.
On January 13, 2020, the global outsourcing market was valued at over $85.6 billion US dollars, with economists predicting that it will continue to grow in the future.
Benefits of Outsourcing ¶
One of the main benefits of outsourcing is that it can increase company revenue. By hiring a third-party company to perform tasks, companies can save money on labor costs and focus on their core business.
Outsourcing can also lessen HR woes by avoiding the need to hire and train employees, as well as provide benefits and insurance.
Additionally, outsourcing can improve productivity by allowing companies to focus on their core business and delegate tasks to specialized companies.
Drawbacks of Outsourcing ¶
However, outsourcing also has its drawbacks. One of the main concerns is that it can lead to job loss in the US, as companies choose to outsource tasks to countries with lower labor costs.
Another concern is that outsourcing can blur the lines between companies, making it difficult for consumers to know where their products are coming from.
Furthermore, outsourcing can have unethical roots, with some companies operating under poor working conditions and exploiting their workers.
Conclusion ¶
Outsourcing is a complex issue that has both benefits and drawbacks. While it can increase company revenue and improve productivity, it can also lead to job loss in the US and have unethical roots.
