How can outsourcing have both a positive and negative impact on developing countries

Many factories in China do not provide good working conditions and they do not abide by standards like the U.

Negative Effects Outsourcing Has on Organizations

By responding to the outsourcing demands and requirements of progressive countries like the US and other western countries such as Australia, the UK, Canada, etc.

And the spending of these funds on improving the education, health, social, and transport infrastructure of the developing nations aids in improving the standard of living of the people. Effects of globalisation on world trade Again looking at the effect of globalisation on world trade, and indirectly on trade in developing countries, it is quite obvious that it enhances economic growth.

And with transfer of new technology from developed countries comes more opportunities for training for local employees. The economic effects of outsourcing are wide and varied and outsourcing in the global competition has brought major changes in the business processes of many organizations and even countries are experiencing massive changes.

Prior to the onset of globalization, there existed a little wage difference between skilled and unskilled workers in most developing nations. Most importantly, by creating thousands of well-paid jobs, outsourcing companies such as Telus International and its competitors are stabilising communities and transforming societies in developing countries.

Ownership actually transfers and that is the major difference between outsourcing and other business relationships. In future, the outsourcing industry still needs to address many important questions. Apple originates in Cupertino, California in the U. This directly affected the development of cheap and effective production methods which have had a dramatic effect on many companies and organizations.

Globalisation negative impacts on developing countries One of the major negative impacts of globalization on developing countries is poverty. Four major factors have been identified to be the driving forces pushing forward worldwide interdependence.

This, in some cases, has lead to impaction of entire regions at a time, causing the benefits to go beyond national boundaries.

But there are positive aspects to outsourcing. A difference in time zones, particularly when outsourcing to offshore companies, can severely affect the productivity of employees who oversee and manage that piece of the business. Often, they work many hours and receive low wages, especially in the manufacturing sector.

Globalization itself should not be hindered. Globalisation and cultural boundaries In addition, globalization has resulted in the loss of cultural boundaries. However, NGO and government stakeholders with in-depth knowledge of local conditions have endorsed the positive socio-economic impact of corporations in this sector.

Although it is believed in many quarters that the two major forces behind globalization are entrepreneurship and technological innovation, these two alone cannot give an explanation of the process of improved economic integration.

Job opportunities for the developing world: The White House has been encouraging American multinational companies to reinvest in manufacturing activities at home. But looking closely at the impacts of globalisation on developing countries, one would observe both sides of the coin, in that it has both positive and negative impacts.

In layman terms, it is called outsourcing which has now developed into a multi-billion dollar industry. However, for receiving countries such as India, Malaysia, China et cetera, the demand for cheap labor in the labor market shows an upward trend.

Sykes has created a series of programmes as part of its Global Giveback effort that supports everything from local clinical health services to physical fitness. If regular monitoring is not conducted, the product would not be able to meet the requirements and the specifications of the customers.

Effects on Economy of Progressive Countries Some economists have made pronouncements and predictions that bymore US jobs are bound to be transferred to developing Asian and African economies.

There are several reasons for this. Shrinking Talent Pool As outsourcing of technology-related jobs to other countries has increased, the number of college students majoring in high-tech studies has decreased. The concept of outsourcing is not new to many businesses. Functions such as receiving distress calls from consumers, promoting and advertising functions, human resource recruitment, bookkeeping and accounting services, etc.

If this trend continues, it could be a major blow to employers looking to hire domestic talent. References Adedeji, A Conversely, Apple is an American brand that does not produce many of its products in the U.

This in turn leads to enhanced breeding of vectors such as mosquitoes, animal or human behaviours such as bathing in pools which may have been contaminated with the larvae of schistosomes, etc Saker et al.

In order to avoid government intervention many American companies are moving their operations and these companies consider outsourcing as an important phenomenon because their gross income is increasing.

Does outsourcing work for all economies?

The most formidable force is the economic dimension of globalization as it is the driving force for both the social and political aspects Ibrahim The Economic Effects of an Outsourcing Company http: But since the influx of foreign corporations occurred, there has been a sectoral shift in the labour force as more hands are being drafted towards assembly production and fewer hands left in the fields.

All these, coupled with shocks in the global economy and the act of outsourcing have led to the laying off of thousands of workers who previously worked in the big multinational companies resulting in mass unemployment.Dec 09,  · This means that outsourcing works only as long as some industry members have yet to adapt it.

Once this happens, outsourcing is no longer a source of competitive advantage. Outsourcing leads to the fragmentation and disintegration of the supply chain, inviting new competitors into the industry, and undermining pricing power and profitability.

Similarly, the impact of outsourcing on the global economy and differential economic effects of outsourcing on different nations, MNC’s and etc are discussed in this paper.

Positive or negative effects of outsourcing Essay

The economic effects of outsourcing are wide and varied and outsourcing in the global competition has brought major changes in the business processes of many organizations and even countries are experiencing massive changes.

Jobs that are being outsourced to developing countries such as China and India must abide by U.S. safety laws and regulations, and this is where the issues with outsourcing begin to take shape.

Most companies assume that by sending jobs overseas, resulting in the losses of hundreds of thousands of jobs and high unemployment, they would achieve cost savings. in that it has both positive and negative impacts.

Outsourcing has a bad reputation but are there reasons to be cheerful?

Globalisation has had a lot of positive effects on developing countries. of outsourcing have led to. Outsourcing is a welcome concept especially for third world countries since they are at the receiving end of this process. With outsourcing, the unemployment rate in third world countries that have developed the potential labor force for this specific industry had been positively addressed.

Outsourcing has a bad reputation but are It can provide people in developing countries with job have endorsed the positive socio-economic impact of.

How can outsourcing have both a positive and negative impact on developing countries
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