Outsourcing Work Overseas

Outsourcing Work Overseas Outsourcing Work Overseas As the head of HR, justifying outsourcing work overseas to current home-based employees would include illuminating them on the kind, nature, cost-savings, and efficiency within the work to be outsourced would be done more effectively, than traditional employment method. According to Strain (2012), the factors that could evidently justify outsourcing would include the following: lower costs, skilled workforce, security, and delegation of some form of control. The most justified rationale for outsourcing work overseas is the potential savings that could be generated by the organization in terms of providing compensation that is significantly cheaper for employees of the same position or rank. For instance, if an employee in the current home-based organization is given a salary rate of $10 per hour and outsourcing the job would mean that the same position is given an acceptable salary of only $5 per hour, then, a savings of $5 per person per hour would be generated. Likewise, this option also considers that the skills, competencies and qualifications of the workforce are significantly at par with those employees at home.

Concurrently, the home organization acknowledges being more vigilant in terms of addressing security and control issues. which could be compromised or threatened due to outsourcing – given the external environment that puts the risk to the home organization. These issues could be justified by placing stringent control measures as well as regular monitoring and performance evaluation schemes. Finally, in terms of technological applications, as emphasized by Putra (2011), is in terms of risk-sharing, to wit: “the company could minimize risk while at the same time gain access to latest technologies and best practices in utilizing the new system to meet the business objectives” (par. 16). Sharing of knowledge, expertise and applications in required technological systems and processes are likewise facilitated through outsourcing.

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References

Putra, J. (2011, February 2). Case #3: IT Outsourcing, Benefits and Critical Success Factors. Retrieved from Promenade: http://julian.asia/2011/02/02/it-outsourcing-benefits-critical-success-factors/

Strain, M. (2012). Advantages and Disadvantages of Outsourcing Production. Retrieved from Hearst Communications, Inc.: http://smallbusiness.chron.com/advantages-disadvantages-outsourcing-production-18244.

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