Global Outsourcing of Jobs. Pros and Cons

Academic Paper from the year 2018 in the subject Business economics - Business Management, Corporate Governance, grade: 1, , language: English, abstract: Global outsourcing of jobs is one of the most debated topics in management studies over the years because of the increasing concerns on economics perspective, technological perspective, organizational perspective, political perspective, and strategic perspective. Research shows that the labour market abroad has been increasing over the years thus posing an economic challenge at home, and this is the reason why most of the firms both large and small outsource jobs for instance, professional services in the less expensive labour markets abroad. Most of the leading firms across the globe outsource most of the jobs for instance, professional services so as to achieve a competitive advantage. However, most of these firms are faced with the need to examine the long-term impacts on the business and the society (both pros and cons of global outsourcing of jobs) for competitive advantages.From an economic perspective, it is argued that cost consideration is the most prominent decision making factor in any organization as most of the managers aim at minimizing the cost of operation so as to achieve a competitive edge in the global market because the goods and services are made competitive in the global market. However, there are those who argue that global outsourcing of jobs results into permanent job loss home, and this has an impact on the society where these firms operate. That said, global outsourcing of jobs needs to be analyzed in details in order to examine the benefits and costs associated with it before making outsourcing options. The research paper will, therefore, analyze some of the pros and cons of global outsourcing of jobs which can be used by managers as they make their outsourcing options for competitive advantage in the global market.