The risks and benefits associated with global outsourcing

Seyed-Mahmoud Aghazadeh

International Journal of Services, Economics and Management, 2011, vol. 3, issue 2, 232-249

Abstract: Many companies have turned to outsourcing as a common practice for their businesses. This paper looks at the current trend of outsourcing and its efficiency for the companies that use it. This is done by looking at the reasons for and against outsourcing and comparing the two. The evidence points to the fact that outsourcing enhances a company's worth, lowers the cost of production and helps a corporation stay competitive. This evidence makes outsourcing very attractive and efficient for companies in the current economy. However, there are quite a few dreadful facts that accompany the outsourcing trend and that must be heeded for the right choices to be made. The more favourable result currently is that outsourcing can be beneficial for a company as long as it is carefully planned and strategically enacted to avoid all possible pitfalls. A look at the economic theory behind outsourcing leads to a question of what the next step is for the future.

Keywords: international outsourcing; global outsourcing; risks; ethics; technology; quality loss; waste. (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:ids:injsem:v:3:y:2011:i:2:p:232-249

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