How can outsourcing have both a positive and negative impact on developing countries

Negative Effects Outsourcing Has on Organizations

For instance, it played a significant role in the ability of some countries to achieve independence. Order Now We are here to help Take a quick look at our trusted writing services to learn more about our quality and hassle-free services. But globalization is a major factor.

However, certain strategists and individuals from developed countries criticize this issue and they believe that outsourcing is a threat to their economy. It will lead to downsizing and reduction in the rate of employees Elmuti, Grunewald and Abebe, But the most widely accepted conclusion is that globalization has contributed largely to inequalities in developing nations.

In the countries that receive outsourced enterprises opportunities are becoming more plentiful, whereas developed countries are experiencing increasing unemployment rates. Compounding the woes of several developing states is the enormous debt build up.

The legal authorities and policy makers are still against the outsourcing and they are underlining the negative impacts on every forum of outsourcing. Disrupting education in USA USA tends to have a relative advantage in industries with highly qualified and skilled workforce and capital requirements.

Thus, the outsourcing movement ought to be thought over twice as too many unexpected and future costs can be brought along with it.

Positive or negative effects of outsourcing Essay

Apple originates in Cupertino, California in the U. Outsourcing benefits corporations by cutting costs, increasing their profits and product quality. A study conducted in America states that 14 million white collar persons in the country are being internationally outsourced Xie, On the other hand, workers have shown displeasure at the deteriorating standard of working conditions.

Results Competent and proficient individuals are the requirement of almost all the organizations in the world. But since the influx of foreign corporations occurred, there has been a sectoral shift in the labour force as more hands are being drafted towards assembly production and fewer hands left in the fields.

Positive or negative effects of outsourcing Essay

A number of companies have taken the advantage of mitigating their costs by outsourcing such jobs to companies in distant countries allowing themselves to solely concentrate on their core competencies.

In the countries that receive outsourced enterprises opportunities are becoming more plentiful, whereas developed countries are experiencing increasing unemployment rates.

Consequently, it has given them the opportunity to access many resources. The economic effects of outsourcing are wide and varied and outsourcing in the global competition has brought major changes in the business processes of many organizations and even countries are experiencing massive changes.

Impact Of Outsourcing On American Workers Morale

Decline in Customer Satisfaction Poor post-purchase customer service can mean a loss of revenue as consumers go elsewhere the next time they need to buy.

The enhanced interaction of western cultures with local cultures in the developing world has led to melting of previously existing cultural barriers so that the individuality of the local cultures begin to fade. As can be easily told, most of the American employees do not take the idea of outsourcing very sportingly.

Morale and Turnover Turnover amounts to a significant cost factor for companies and must be avoided as far as possible.

Ownership actually transfers and that is the major difference between outsourcing and other business relationships. Four major factors have been identified to be the driving forces pushing forward worldwide interdependence.

In order to avoid government intervention many American companies are moving their operations and these companies consider outsourcing as an important phenomenon because their gross income is increasing.

My Essay Point

Positive and negative impact of outsourcing Outsourcing is a both a dirty and a divine word depending on the place to which a person belongs.

Since the dawn of Globalization, the market has become extremely competitive what with organizations shifting the manufacturing bases from the developed world to developing ones as they provide quality. in that it has both positive and negative impacts.

Globalisation has had a lot of positive effects on developing countries. of outsourcing have led to.

Does outsourcing work for all economies?

to show the positive and negative impact of the its negative effects as well, which include both of outsourcing to developing countries. The initial cost-saving benefits of outsourcing can be misleading, as it often takes some time for the negative impacts to make themselves known. The key factors which have led to a growing trend of outsourcing are.

Lack of expert-labor in some portions of the business process; Availability of cheaper labor. The initial cost-saving benefits of outsourcing can be misleading, as it often takes some time for the negative impacts to make themselves known. By the time management realizes that outsourcing isn’t always the ideal situation they thought it was, the company's reputation may take a hit.

How can outsourcing have both a positive and negative impact on developing countries
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Is Outsourcing a Chance for Developing Countries? - Daily Sabah