Is Outsourcing a Good Idea Research Paper Example | Topics and Well Written Essays - 500 words

Is Outsourcing a Good Idea - Research Paper Example Recent developments in the global economy like the Internet have played a major role in promoting the practice of outsourcing. In the contemporary age, business entrepreneurs do not even need to always call the service providers in person abroad as the services can be provided over the Internet, thus further reducing the cost of operation and increasing the profitability of the business. â€Å"Because IT services, in the United States, from equipment to IT personnel and specialists, are expensive, there is a significant degree of financial incentive to a company when outsourcing for this reason alone† (Cadena, 2007). Outsourcing is potentially dangerous for the stability of economy and the socioeconomic system of a country. When a company outsources, it essentially plays its role in reducing the number of employment opportunities available to the local workers. As a result of this, the rate of unemployment in the country increases and people become more frustrated and dissatisfied. Outsourcing is a selfish move as the entrepreneurs make profits at the cost of the happiness of the whole society. Outsourcing poses complications when the organization feels the need of change and be more innovative. When a company produces a product with tight competition, outsourcing may reduce the company’s tendency to maintain this competition because the customers want to see and witness the provider of the product. It is crucial to retain the services domestically to land new accounts. Outsourcing is disadvantageous for the local workers but advantageous for the foreign workers, particularly when they are from the underdeveloped or developing countries. Although many people do not like the US for the role it has played in the international politics, yet they are still optimistic about working in or for America (Dutton, 2007). When the situation is considered as a whole on a global scale, outsourcing may appear to be in positive light, though