Negative Impact Of Outsourcing On Economy Research Paper

Negative Impact Of Outsourcing On Economy - Research Paper ExampleCompanies contemplate on various ways in which they would reduce on the output of their money and intern saves on cost. Therefore, the main idea that comes across is outsourcing of some of their work. There is a notion that outsourcing has the ability of saving on cost of employment. The fact is that close to of outsourcing companies work on a low budget their workers are not provided with benefits and most of their employees do not require overhead expenses (Olga, 2003). Moreover, cost can in like manner be reduced if the company offering outsourcing services is from a different country. This is because of differences in economic stature, which willing lead to high differences in currency value.The other reason why some companies outsource their work to experts is that they want to involve themselves on other business issues. This is due to the urge of concentration by individuals in a company (Lazarus, 2004). The experts will ensure that work is done, and the contracting company will leave everything to them as they concentrate on other things. The management will also give out work, which will not require their attention and resources, as they will have an easy time managing a company from within. On the other hand, companies involved with outsourcing can maintain their professionalism by operating on a streamlined direction of acquiring excellent technology, which could not be available in locally (Olga, 2003). Outsourcing helps in globalization of a company, as it is a cost-effective way of building branches and franchises in other countries. The manner in which outsourcing affects cost is indicated in the graph below.is indicatedin the graph below. It is clear that outsourcing is anevent, which has gone beyond the safe and soundideologyof employment and working from one position as a team (Ryan, 2004). Therefore, it would best if the paper examines somenegativeeffects related to outsou rcing in the education sector, society, companies, neighborhoods, and communities (Michelle, 2004). Moreover, thepaperwill alsodeterminesome hidden costs incurred by companies in terms of reducing cost ofproductivityand diminish supportfrom customers. Effects of outsourcing According, to some business scholars such as Olga Kharif (2004) argue that companies cull outsourcing because of low cost associated with it and they will save wages they would give to employees working from within the company. However, withcostof IT increasing every day, companies will realize that they sometimes use more than what they expected to use (Olga, 2003). The industry is alwayscompetitive, and most companies prefer offshore outsourcing. However, frustrationis drawnback to localemployee who would be rendered jobless due to anotherpersonelsewherebeing givensame job. Outsourcing has also createdinsecurityin the job market as workers can lose their positions as other people canoffertheir expertise frome lsewhereat a cheaper price (Ryan, 2004). The otherpredicamentcaused by outsourcing is and associated with joblessnessis increased detestation rate. People need to survive, and they would do anything to survive. Therefore, people who lose their jobs willturnto crime (Michelle, 2004). Crimes include cyber crimes where people hack into the