Is Outsourcing Is a Dirty Word? Essay

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The word “Outsourcing” strikes an emotional cord whenever it is mentioned. There has been much debate about its “pros” and “cons” in newspaper and magazine articles and in the media. There are those who believe that outsourcing takes jobs away from workers in this country and gives them to people in under-developed countries which provide cheap labor. I myself vividly recall Kathie Lee Gifford’s emotional televised admission that she had no idea that the company that designed and sold clothing under her label was actually outsourcing their work to El Salvador, Honduras and Mexican factories with girls as young as 12 working in abysmal conditions. Then there are those who would argue that outsourcing is the only way that US companies can remain competitive in what is fast becoming a global neighborhood. They claim that outsourcing promotes innovation; that it actually creates jobs for US workers by allowing them to fill higher positions in companies which outsource some of their work. If David Letterman were to do his nightly monologue about outsourcing the following would be his Top Ten erroneous assumptions about outsourcing: 1. Outsourcing will be a “quick fix” for company problems 2. There will be no employee resistance 3. Outsourcing will cut costs 4. The outsourcing company will define their company’s service delivery so you don’t have to know anything about it 5. Outsourcing vendors are all the same 6. Senior management will love the idea so long as there is a promise to save them money 7. There is no need to establish a vendor evaluation process since vendors are all the same 8. You don’t have to develop clear cut performance outcomes. Everything will take care of itself once you outsource 9. There is no need to negotiate with vendors regarding costs and damages since all companies are the same 10. There is no need to manage the

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