Outsourcing job means that sending jobs to other countries and when the companies have not well qualified or skilled staff for performing the job, the question is that why companies do job outsource? Job outsourcing is a controversial issue in the world because when companies outsource the jobs it might create unemployment in the home country.
I will go in the favor of outsourcing jobs because of many reasons, the most important point behind that is to control the cost and making high profits. Companies are establish for making high profits and to control the expense, sometimes companies are not willing to outsource but they outsource the jobs. Due to outsourcing company can improve and increase the efficiency of the company. Outsourcing can take the jobs from the home country but will be gained by the other country.
Some people argue that outsourcing jobs are not good and right way to do business, because when you outsource job, you cannot know that people are doing their level best of performing the job, or either the product they are making up to the that level quality or not, but the thing is when company outsource the jobs they already know about the consequences and the environment of that country where they are going to outsource job, so then companies outsource jobs, they firstly give the training to those people then they perform the job for companies. Companies hire the consultants for training; the consultants which companies hire in other countries cost them low as compare to their home country, so company benefit on both ways. In Europe the labor cost is high, so companies go for outsourcing jobs to manage the cost and increase the profits. We can also see this thing in America. In today's world the competition is high, so companies outsourcing the jobs for take an advantage of the competition, because when you are in competition you have to lower your prices to become a part of your market, so due to this the profit ratio goes down, to maintain the cost and profits companies outsource the jobs due to this they are still in the competition and after that they will become the threat for the other companies. Stephen (2008, December 14th)
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Mike Batta (2006) suggested that, Outsourcing kills the competition, in today's world mostly companies have competing with each other on price, every company trying to reduce the prices to gain more and more market share because mostly people go for low price products and deals. Due to outsourcing jobs, companies become a threat for other companies and on the other hand they are making high profits, because the cost of labor is low in Asian countries, we can see that most of the call centers of the UK and America are working in Pakistan and India. Outsourcing can maintain the price level of momentous duration; this thing can give the advantage to the clients. These factors can kill the competition of the company.
Business is growing in the world and the new technology is coming day by day, to cope up with the technology and to well manage the business, companies need well qualified and skilled labor for the jobs, so if companies doesn't outsource the jobs, the companies spend a lot of money and sources for improving the low skilled employees or to hire the employees who can manage and to run the new technology properly for the survival of business. Companies spend the time in interviewing the candidates and companies pay fee to the agencies a recruitment fee. They selected candidates then need training for their posts which consumes a lot of time, then the cost of their health insurance, retirement plans, purchasing the new furniture computers, and companies also need a management staff for oversee the wok. In today's world you can't waste your time for moving with the world, the world is fast know, new technology is coming on daily bases, so company cannot afford the delays, When companies outsource the jobs they no need to spend time on hiring firing employees, no training cost, no hiring cost, no employee benefits, no need to hire management staff and no need to purchase the furniture and computers. In today's world every company is trying to cut their cost for high profits in high competition environment, as competition is increasing day by day. In outsourcing companies can get specialized agents, and their expertise can be benefit for the company. Outsourcing can save company time and cost. This view has been supported in the work of Sarah Manias (n.d.).
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Eric Scott (2007) suggested that, outsourcing is the alternative of the number of reasons, the first one reason is cost reduction of the company, and companies cut their costs in manufacturing and assembling the products in other countries where there are low labor cost, low wages low operating cost, companies can get great profit margins due to these movements and operations. In job outsourcing companies get well qualified employees which will be benefited for the in-house employees because the in-house employees can also learn the things from them, and due to this the productivity of the company will increase. Outsourcing has the additional extra of fundamentally increasing a company manpower building them extra attractive to potential clients, as most of the people wants to take or deal with those companies who has manpower required to congregate all of their multifaceted needs.
Centric Source (2009, May 13th), In today's world the outsourcing become an option for the small business companies and a large business companies, the reason behind that is to expand or grow the small or large business, because when companies outsourcing the relation creates between the companies, and business expands. According to this article companies saves 50% in most of its cases. Outsourcing firms handled the employees of company choices, so companies could free from this headache for handling the employees. The amount which companies saves from outsourcing can utilize in their future business and can give the new heights to future business. As we all know that new technology is very expensive to buy, the amount which companies saves from outsourcing can help the companies to buy the updated new technology which can definitely help the companies to grow and expand their business, and due to this, companies can easily attract the new customers. Outsourcing helps the companies for dealing its customers and its clients at 24hours, so then the customers satisfy with the company.
(Anon., 2007, May 7th) states that, In these days, the jobs related to computer such as blogging, link building, writing articles, which all contributes to SEO (search engine optimization) are being outsourced. Companies outsourced SEO because; companies can find the superlative workforce for the best price possible. According to this article, companies can minimize its expense by outsourcing the SEO. Business can expands by outsourcing, because companies have a lot of choices to expand the business, obviously when company minimize its expenses and get a good amount of profits they can definitely expand their business by outsourcing. In under develop countries there is a big problem of employment, so outsourcing creates jobs for under develop countries.
Danial Holland (2009, October 21st) according to Holland, Outsourcing is now become a alternative for the companies to cut down their cost, and their work to those countries where the cost of labor is low, many companies open their plants for manufacturing and assembling the products in low labor cost countries. Companies specially needs a well qualified and skilled people for computer software's so they outsource the jobs rather than giving it to in-house, as companies need a big cost to train and make them well qualified to handle software related task, so they outsource and give to those who have special skills in software related task, and they can done their job quickly.
Outsourcing jobs is now become an option for the companies for growing the businesses and cutting the company expanses. The main and key advantage of outsourcing jobs is to cut the companies expanse. Outsourcing jobs are now important issue in the world, as the ongoing recession in the world creates many problems for the companies, and companies' faces many difficulties for managing the expanses, so companies focuses on outsourcing jobs for cutting the cost of companies.