Running head: OUTSOURCING ACTIVITIES 1
Outsourcing Activities: Response
Student’s Name
Institution
OUTSOURCING ACTIVITIES 2
Outsourcing Activities: Response
Thank you for your post on outsourcing, the ideas presented is well organized and
detailed enough to enlighten the audience of the concept. In particular the inclusion of the
practice as being necessary for organizations that seek to take advantage of cost cutting measures
using outsourcing gives an ideal view of the aim of outsourcing among different companies (Lin
& Ma, 2012). However, it would be important to note the role played by globalization in
facilitating such activities. Without the availability of ideal transport networks, Nike would be
incapable of outsourcing some stages of its production process to markets with cheaper labor,
which implies that it would not be in a position to reap from the benefits of the cost-cutting
measures. Consequently, one ought to acknowledge that globalization, and the consequent
improvement in transport and communication has been a critical factor in facilitating outsourcing
practices, the consequence of which has been a reduction in the cost of products and services due
to the reduced cost of production.
While explaining the application of outsourcing, the article highlights the critical role
played by organizations’ management in determining the stages of outsourcing in that would be
necessary without any extreme effect on the quality of the products. In particular, firms often
outsource activities that do not require much detail to develop, to reduce the extent of the
impacts of the activities on the ultimate product. Notably, most of the outsourcing companies
seek the services in economies with cheap labor availability, and in most cases, the labor
available is often not as skilled as would be necessary to complete complex tasks. Therefore, the
decisions to outsource are often sensitive, and follow a rigorous discussion among the members
of the company management team to ensure that the company to which the services are
outsourced is capable of completing the tasks effectively and in the desired quality.
OUTSOURCING ACTIVITIES 3
Nonetheless, these specifications on quality and quantity of production have often been
the source of the negative publicity attached to outsourcing. According to research into firms that
complete the outsourced tasks, the employees in the firms often face a significant amount of
pressure from the management in order to complete the tasks for the outsourcing company, in
some cases resulting to the violation of the rights of such employees (Chan, Pun, & Selden,
2015). The outsourcing company does not understand the challenges that the service provider
may experience completing the assigned tasks, and in some cases, the pressure to perform ends
up falling on the employees tasked with completing different tasks. Consequently, they may at
times be forced to work overtime, sometimes without pay, to make up for lost time so that the
company may meet the set deadlines for delivery of certain products.
In summary, your article is very informative on the development of outsourcing and its
role in modern businesses, but fails to mention some of the adversities associated with the
practice. It could be highly lucrative to outsource products to an alternative labor market in order
to capitalize on cost reduction, but it is also essential that the management teams work with the
firms completing the said tasks to ensure that they engage in ideal practices in the process.
Otherwise, the negative reputation gained by the firm in question could end up affecting the
company outsourcing the said activities.
OUTSOURCING ACTIVITIES 4
References
Chan, J., Pun, N., & Selden, M. (2015). Apple’s iPad city: Subcontracting exploitation to
China. Handbook of the international political economy of production, 76-97.
Lin, S., & Ma, A. C. (2012). Outsourcing and productivity: Evidence from Korean data. Journal
of Asian Economics, 23(1), 39-49.
