Outsourcing

Questions:

1. What are your thoughts on outsourcing and what are the effects on our economy?

Outsourcing is usually considered in an attempt to reduce costs and make a business more
efficient; thus; in turn making it more competitive . Failure to do this may ultimately lead to the
business becoming unprofitable and almost certainly cease trading.
Outsourcing is a subject that draws much attention and controversy whenever it’s discussed in a
public arena, something that is unlikely to change , no matter how convincing the arguments
are. This is often why Outsourcing discussion occur behind closed doors and involve doors and
involve high level business executives. However while the delicate nature of outsourcing will
always provoke controversy and carry negative connotations, there are actually numerous
benefits to the global economy. To analyze these more closely , it is a subject that is better
addressed in terms of benefits to the local economy and the foreign economy- the former being
the western economy who will outsource to the latter foreign economy.
The immediate arguments that springs to mind whenever outsourcing is mentioned is the
inevitable loss of local jobs. And yes while this is con fern there are many tangible benefits that
can realized by Outsourcing to another country as well.
Outsourcing is usually considered in an attempt to reduce costs and make a business more
efficient , thus in turn making it more competitive. Failure to do this may ultimately lead to the
business becoming unprofitable and almost certainly cease trading. The impact that is this
scenario will have on the local economy is far more detrimental than a few jobs being lost of
outsourcing. In fact an exponentially greater amount of jobs will be lost if the company folds.
Furthermore , a more competitive local business will appeal far more to potential investors,
whose investments will ultimately dive greater growth in the local economy as the business
expands. These investors may even be to foreign investors , so the benefits realized by
outsourcing will have come full circle and further boosted the local economy.
Local businesses that don’t improve efficiency through outsourcing or cease trading because
they are no longer competitive have only one other option consider operating abroad driving
local businesses to foreign countries will damage the local economy as jobs are lost, skills will
eventually fade and the local government unable to recuperate anything through taxation.
2. What are the pros and cons of outsourcing?
- Pro: cost effective
- Pro: faster turnaround
- Pro: specialization
- Pro: access to more talent
- Pro: can prevent burnout of full time staff
- Con: they don’t know your business
- Con: communication challenges
- Con: difficulty with quality control

Cons of outsourcing to the Philippines

 - Loss of visibility and control perhaps the biggest outsourcing risk is loss of visibility and
control. Loss of visibility and control is a common fear many CEOs have when deciding
to outsource . Loss of control in outsourcing can mean very high costs with a sub par
product or service.
3. Write your reflection and learning about the video Artificial intelligence and how it affect our life
directly.

From morning to night , going about our everyday routines. AI technology drives much of what we do.
When we wake, many of us reach for our mobile phone or laptop to start our day. Doing so has become
automatic ,and integral to how we function in terms of our decision making , planning and information
seeking.