International Business:Outsourcing is a practice of shifting percentages of work to an external supplier or contractor as opposed to working on it internally. Companies carry the process as a way of minimizing cost. Outsourcing is seen as a way of transferring their worries to others who may be better qualified so as to focus on profit making. It affects different aspect of the business such as; engineering, design, software development, financial control, logistics management, customer support, and sales.
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India has been one of the luckiest countries to reap the benefits of transfer of jobs that has seen its economy rapidly grow. On the other hand, outsourcing has challenges such as increased cost, risk of fraud, loss of skills and lack of proper management. It also leads to consequences to the countries from where the jobs are transferred. Unemployment rate increases, brain drain develops, a country’s economy is also affected due to unemployment.
Dobbs, Lou, and Joanne Myers. Exporting America: why corporate greed is shipping American jobs overseas. New York: Warner Business Books, 2004:1-80
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