The Future Of Outsourcing Essay

1601 words - 6 pages

The Future of Outsourcing

In this extremely technically diverse twenty first century, where businesses have become able to meet more and more of the needs of people and other businesses, it is often amazing to think of all the individually operating parts which together make the business a success. Often if even one part of that great machine falters, progress is halted. Thus it is crucial to any company to be as healthy and efficient as possible. As demands for flexibility for customers and increased profit for administration continue to grow, more and more businesses are turning to outsourcing for the creation of certain products and services. This is one way to alleviate pressure from businesses workers, allowing them to do their personal job more efficiently.

Outsourcing involves taking activities (whether they be things like networking or simply diverse aspects of support for a business) which were once self contained within the company and subcontracting them out to an organization which is not affiliated with the original business. This has become of huge importance to large businesses because it helps the business to run significantly more efficiently. Often this efficiency is directly drawn from monetary statistics. For a business to perform certain functions within itself may cost significantly more than if they were to hire an outsource provider who, for example, already owns all the equipment needed to do the job. It is clear here how a small monthly bill to an outside organization would cost significantly less in overhead cost than buying all the needed equipment and then paying employees to perform the needed task.

Efficiency can also be seen in the work load of a given employee. Take for example the following scenario. Joseph Banks, a programmer for Microsoft managed to escape the downsizing of last year. Despite his enthusiasm about not being laid off, Joseph’s workload had increased ten fold in response to the company trying to sustain its present levels of product production and customer satisfaction despite now employing only three quarters of the work force it formally had. Joseph is working longer hours, thus spending less time with his family and getting less sleep. His general impression of his job (employee satisfaction) is quickly dropping. All this contributes to his decreasing quality of work. Thankfully, after a few months, Joseph’s good friend Bill (who has a strong hand in how things work at Microsoft) notices Joseph’s declining quality of work and general unhappiness and decides to make some changes. They decide to outsource many of the more menial jobs that were once performed by lower level employees; those jobs which coincidentally now are the responsibility of Joseph. With these other tasks taken care of elsewhere, Joseph is back to enjoying his job and designing some of the highest quality product produced by the Microsoft Corporation. It is clear from this scenario how employee satisfaction plays...

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