High Levels of Outsourcing are Prudent (for both organizations and society at large)

            The high levels of outsourcing are prudent or not, before reviewing this issue, it is important to define what outsourcing is and what pros and cons it holds. When a company hires outside sources like a company or individuals to perform certain tasks or provide any services, which were supposed to be done by the company for its business; this whole process is called outsourcing (Techtarget.com 2018). For instance, if a company wants a third party to handle its customer’s calls for complaints and queries, then they would contact with an outsourcing company having their call canter. The company will provide details of products and services they provide, and integrate their business procedures with the outsourcing firm so that they can handle their customers’ calls. The outsourcing is done by companies for various reasons like cost cutting could be the most prominent reason. But still, high level of outsourcing is questionable in so many ways (Lopez 2017)

        Certainly, there could be various reasons for companies to outsource their operations, but it is important to look at some of them to see the logic behind these decisions. The first and foremost purpose of outsourcing by companies is reducing their business operations costs. They believe that hiring internal staff, then managing everything for them along with giving various perks can be costly. So instead of hiring internal staff, they outsource certain operations to their parties, who perform those functions on their behalf. Moreover, a company may not have a resource capability to do certain tasks like they may lack any technology. So, companies do outsource to gain access to those technologies and capabilities. In addition to that companies look for outsourcing when they believe that outsourcing would be more profitable and it would allow them to focus on core aspects of their business. But still, companies have to be very careful regarding their outsourcing decisions, because if they are not properly planned, then it is less likely to get desired outcomes (PINE 2018)

        The outsourcing does not come with pros only; rather it has cons as well. It is beneficial for companies as they have to hire and manage less number of employees, and they are also bale to reduce their labor costs as well. The other great feature of outsourcing is getting access to worldwide pool of talent, which may not be available in the local market. On the other hand, outsourcing can be dangerous for companies as they don’t have enough control on things, as they have in their internal processes. The communication issues can also be considered a concerning sign for a company, because lack of proper communication may result in poor outcomes. The company also may not have any control over quality, which is another significant disadvantage of outsourcing. So, companies have to keep both aspects in mind, while making any decisions about outsourcing (Patel 2017)

        The companies must keep in their mind that outsourcing has benefits, but it also has many potential risks as well. So, high level of outsourcing can be dangerous for companies. For instance, if they are dependent on a third party for manufacturing of products, and that manufacturing facility stops working due to any reason, then company will be in trouble. One incident has happened in Bangladesh, where an eight story plaza was collapsed, and this plaza was a garment factory for a company, who outsourced its work. In this incident, 1100 workers lost their lives. It shows that it is not logical to do outsourcing in so much quantity as it is having risks for not only organizations, but for society as well (Forbes 2013).

        Looking at pros and cons along with potential risks of outsourcing, it can be said that it is not prudent to go with such high levels of outsourcing. The companies should make sure that they do not exceed the limits in this regard. A little amount of outsourcing for some necessary parts can be considered beneficial, but going for it with great quantity is not viable, both for organization and society.

References of High Levels of Outsourcing are Prudent (for both organizations and society at large)

Forbes. 2013. How To Do Away With The Dangers Of Outsourcing. Accessed November 12, 2018. https://www.forbes.com/sites/hbsworkingknowledge/2013/06/06/how-to-do-away-with-the-dangers-of-outsourcing/#acdaf1e54244.

Lopez, Jesus. 2017. What is outsourcing? What does it mean for companies? Accessed November 12, 2018. https://medium.com/coderslink/what-is-outsourcing-what-does-it-mean-for-companies-eff73fe60372.

Patel, Deep. 2017. The Pros And Cons Of Outsourcing. Accessed November 12, 2018. https://www.forbes.com/sites/deeppatel/2017/07/17/the-pros-and-cons-of-outsourcing-and-the-effect-on-company-culture/#7c546fe7562d.

PINE, MARTY. 2018. Learn Why Companies Outsource. Accessed November 12, 2018. https://www.thebalance.com/why-do-companies-outsource-2553035.

Techtarget.com. 2018. outsourcing. Accessed November 12, 2018. https://searchcio.techtarget.com/definition/outsourcing.