OUTSOURCING 2
For the last few decades, outsourcing has become common in various
organizations operating in different sectors worldwide. Specifically,
outsourcing can be explained as a practice that is used by various companies
to minimize costs since the companies transfer part of their work to external
suppliers instead of having the work completed within the organization
(Rouse 2016 ). Normally, one of the reasons why organizations prefer to
outsource some of their operations is mainly due to the fact that it helps
them reduce their operations costs and at the same time enhance efficiency
of the operations as the organizations are able to focus on what they are
competent in rather than spend a lot of time and resources trying to
accomplish some tasks that they might not be having resources to
accomplish.
For the last couple of years, many organizations that are based in the
USA have been able to drastically reduce their operation costs by
outsourcing some of their operations to outsourcing partners based in
various foreign countries. Indeed, China has been one of the countries where
most of the outsourcing partners are based. However, the outsourcing
undertaken by majority of the US based companies has had major negative
impacts to the economy of the country since thousands of jobs have been
lost resulting to millions of Americans with no job.
In that perspective, there is a need for the US government to ensure
that it puts in place various measures aimed at curbing the number of
companies outsourcing their operations to foreign companies since by doing
OUTSOURCING 3
that, the government will be able to ensure that the jobs of millions of
Americans are safeguarded. One of the changes that could be needed to
ensure that millions of jobs in America are safeguarded would involve the
government imposing a higher tax to the organizations that outsource their
operations to foreign companies (Goldman 2016; Goodman 2017). In
addition to that, the government could also consider offering various
subsidies to companies that do not outsource their operations to foreign
based companies.
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References
Goodman, T. (2017). Trump Puts Companies On Notice: Outsource At Your
Own Peril.
Retrieved from: http://dailycaller.com/2017/01/11/trump-puts-
companies-on-
notice-outsource-at-your-own-peril/#ixzz4YqDMKmIO
Goldman, D. (2016). Donald Trump doubles down on 35% tax for businesses
that ship
jobs out of U.S. Retrieved from:
http://money.cnn.com/2016/12/04/investing/donald-trump-tax-jobs/
Rouse, M. (2016). Outsourcing. Retrieved from:
http://searchcio.techtarget.com/definition/outsourcing
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