Outsourcing is defined as a task or process which can be performed by employees within an organization, but instead is contracted to an external, third party.
The idea of outsourcing began to develop during the 1950's.
During these times, outsourcing was a function of necessity.
Companies who were not 100% self-sufficient would hire external parties to accomplish the tasks and processes that they were unable to perform internally.
It wasn't until 1989 that Outsourcing became an officially declared business strategy.
Today, outsourcing has evolved into something much more complex and involved.
It is now focused on "strategic partnerships" instead of necessity.
Due to numerous financial and social reasons, outsourcing is becoming a go-to method for numerous companies worldwide.
While to some the term outsourcing equates to opportunity and growth and to others, as dollars saved, to many outsourcing means nothing more than unemployment.
This issue really came into play during the 2004 Presidential election.
The issue of outsourcing's consequences on the U.
S.
Workforce was one of the main focuses of the political debates.
To show just how strongly American's felt about the negative effects of outsourcing, in a poll conducted in 2004, it was found that 62% of voters believed that the U.
S.
Government should somehow involve itself in the international affairs of businesses by taxing those who chose to outsource, while 71% of American voters felts as though outsourcing jobs to other countries was having a harmful effect on the American economy.
Although the poll was conducted seven years ago and American's have become more open to the idea of outsourcing, there are still many opposed to the idea.
Sadly, for those who are against the idea, the pressure to outsource has been increasing steadily.
When it was first introduced to the business world, businesses were wary of the idea, but today it has become commonplace.
This is due to the many positive effects outsourcing can have on organizations.
First and foremost, outsourcing is an excellent way to save money.
Many businesses outsource jobs to China, India and other foreign countries because the workers are willing to accept a significantly lower pay than workers in America.
Cutting the costs of labor can allow companies to charge lower prices for their goods and services; thus increasing the demand for their goods and services and in turn increasing their profits.
What naysayers fail to see is that an increase in company profits can lead to growth, with growth comes a higher market share, and with a higher market share comes the opportunity to create more jobs in the U.
S.
Many companies use outsourcing as a way to cut costs and stay afloat in the always changing economy.
If some businesses were to choose not the outsource, they could be losing money; thus creating job loss.
Outsourcing also provides many other opportunities for companies.
By widening their hiring base, they are able to increase their knowledge and talent pool.
Businesses are now able to search the world for the most experienced, skilled and knowledgable workers in their fields.
Outsourcing allows for these skilled workers to assist in the development and innovation of U.
S.
companies which can result in extreme growth.
Outsourcing also allows for companies to allocate their resources, whether that be workers, building facilities, etc.
, to the concentration and development of core components of the business.
Instead of using U.
S.
workers to perform customer service jobs or IT support services, companies outsource these duties to other companies worldwide who specialize in these areas.
Outsourcing not only has an extremely positive effects on U.
S.
businesses but also other the countries we outsource to.
Outsourcing creates jobs and opportunities worldwide for millions.
By expanding U.
S.
businesses worldwide, many less developed countries are able to reap the benefits.
Creating jobs worldwide allows for the growth of their economies as well.
All in all, outsourcing has had a positive effect on the U.
S.
economy as well as economies worldwide.
The business world is always changing and always evolving, so companies will always be searching for ways to stay on top.
Outsourcing has proven itself to be a wonderful way for companies to gain a competitive edge.