Outsourcing is the practice of transferring portions of work to outside suppliers and completing it internally. Outsourcing can also be referred to as the process of acquiring labor from outside to work in the organization, the people acquired are not fully employed by the organization but they are there to work on a certain project or complete certain tasks (Haus, 2005). Outsourcing is effective in an organization as it helps in cost reduction; costs are reduced and operating costs are controlled as the task or the project is done outside the organization. Outsourcing is also effective to business as it helps the organization to have access to resources that are not available internally such resources are acquired from suppliers or other organizations that have them.
Outsourcing is also important to an organization as it enables the business to acquire high knowledgeable individuals who are capable of performing the work; this helps the organization to get the best quality work and thus increase their performance (Easterly, 2002). Outsourcing saves the organization the expenses of hiring an employee or employees as it can acquire the services it requires from an outside vendor. This is advantageous because some services are required from time to time and thus instead of hiring an employee who will stay idle when the services are not required the organization saves cost by contracting a vendor to deliver the services when needed.
The governments should implement policies to regulate outsourcing this is because outsourcing has become a major activity in many organizations and to ensure that it succeeds government should set procedures and policies to ensure that outsourcing activities are done properly and benefits both the outsourcer and the outsourced (Wartzman, 2010). Another change that needs to be made is that people especially the business personnel should be educated on the importance of outsourced and be encouraged to practice it is it will enable them to reduce costs while at the same time enjoying its effectiveness.
Easterly, W. (2002). “Outsourcing Impacts on Today’s Business. The MIT Press, Cambridge.
Haus, Marian. (2005). “Outsourcing“. Oxford University Press.
Wartzman, Rick. (2010). “Insourcing and Outsourcing: the Right Mix“. Bloomberg Business. Bloomberg Business.com. Accessed 16 August 2017