Outsourcing Essay Example | Topics and Well Written Essays - 500 words - 4

Outsourcing - Essay ExampleFrom raw materials to semi-finished components, from consulting to detail engineering and from direct sales to distributor/retailer networks in that location have been avenues for outsourcing as a part of strategic management of operations. The new twist to this has been the phenomenal growth of outsourcing from overseas resources as opposed to the conventional local anaesthetic outsourcing, resulting in significant job losses at home and the familiar outcry.Business surpluses or profits seek avenues of investment with high returns. Multinational firms in the developed nations with high surpluses and operating in saturated markets look to developing and underdeveloped nations with high populations for investments. The latter countries, on the other hand have the trouble of high unemployment or surplus labor and low wage structure. These factors result in overseas investments, actively supported by the globalization process. In the process, the do good of low cost production not just for the overseas market but for the home market itselfLoss of jobs for locals is a sensitive issue for politicians and the public spirited. President Obamas famous statement, Say no to Bangalore and yes to Buffalo reflects the chasm between political and business compulsions. Multinationals like Nokia, IBM, Microsoft, Wal-Mart, General Motors and Levy have set up production facilities overseas with local employees while even in the US thousands of jobs in the technology industry are contracted to foreign workers (CNN.com Rai, New York propagation Feb.22, 2004 Case study, Rugman & Collinson, 2009, pp.30 &31). The debate surrounding the sweatshops of Asian countries with both the supporters and opponents holding out valid arguments, is another angle to the phenomenon of outsourcing. In the ultimate analysis, outsourcing has to be viewed as a trade off between high-cost local manufacture vs. low-priced but standard quality foreign-made products vs. job losses at home vs. expanding read