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.