Cons of Outsourcing
Outsourcing jobs carry a negative connotation that can be detrimental to an individual or even the reputation of a corporation. The hot bottom issue is that whenever outsourcing jobs are on the rise, unemployment levels go up as millions of people lose their jobs. Subsequently, individuals resort to changing their career paths in the quest of seeking employment opportunities in other fields. My opinion is that outsourcing puts the jobs of other individuals in jeopardy and may force employees to leave their jobs and ensure job security by acquiring those jobs that cannot be outsourced. What draws interest in this subject is how the loss of control transpires because one is likely to lose control whenever their jobs are handled by someone else.
Outsourcing has increased its prevalence of late and has become a controversial area of concern. The essence of outsourcing may not be the most prudent because the benefits that are to be derived from outsourcing are not always guaranteed. The top rated outsourcing countries are India, Indonesia and China, which have an overall rating of 7.1, 6.9 and 6.4 respectively (Bragg 21). There are some negative aspects of outsourcing that should not be looked down upon because of the impact they impose. For instance, outsourcing may give the employees an impression that their efforts are not appreciated because it seems that the new labour is more productive hence the outsourcing occurs.
The employees may feel that the skills that have been acquired in their corresponding facets of specialization fall short of the optimum employment requirements and thus degrade their morale towards their jobs. In this respect, the essence of outsourcing may be counterproductive at some point, because even though the outsourced labour is deemed efficacious, the remaining staff may reduce their performance productivity which will negatively affect performance (Burkholder 96).
The retained employees may produce lower quality products as a result of lack of motivation while the outsourced labour may produce substandard products before they fully adapt to the quality standards of the new organization. In addition, there will also be a factor of poor performance which is inherently associated with outsourcing. To substantiate the poor performance aspect, most organizations will engage in outsourcing activities for the sole purpose of saving costs. In fact, 44% of companies resort to outsourcing so as to reduce or control their costs (Bragg 112). Similarly, any poor performance will also have an overall negative impact on the operations of an organization, and this also shows how outsourcing can be counterproductive. The most important factor to acknowledge is that one will always get what they are after. Therefore, in order to hire the best employees to fully service the organizational needs, one should be in a position to dig deeper within their pockets so as to get value for their money.
Outsourcing will also have an impact of altering the levels of employment and recruitment problems because of new labour. In the United Sates, for instance, the numbers of lost jobs in the management field were 288,281 and a total of 348,028 in the field of business. A total of all the jobs lost in nine job categories amounts to about 3, 400,000 (Burkholder 132). The largest outsourcing sector was the manufacturing docket which ranks at 53%. The rate of unemployment in the domestic country will increase as employees lose their jobs for the cheaply hired labour. In essence, the ulterior objective for outsourcing is cost reduction. Other employees will resort to other fields where they feel their jobs are more secure. Some organizations such as Tesco will, therefore, have to protect its personnel by assuring the employees that their job security is guaranteed so as to foster productivity of the employees (Kirk 123).
As for the recruitment problems, the outsourced employees may not be in a position to have a quick comprehension of the organization culture as the regular employees (Kirk 89). The outsourced employees may also not fit with the overall organizational practices immediately, and this will eventually affect performance because the productivity of an organization has always been a function of the employees’ devotion and commitment. The recruitment problems may also lead to loss of customers. A practical example is where some cultures may, for instance, prefer speaking to a North American while addressing their needs that pertain to customer services and not any other culture. However, whenever outsourcing takes place and new labour is hired, it will be a slap on the face for consumers because they will feel disconnected as they are be used to the representatives who have been always serving them.
The conditions can be quite frustrating because there may also be the aspect of language barrier. An example is when a call centre of an organization has been outsourced to another different language which translates that the customers will henceforth be forced to deal with an unhandy communication conditions.
Outsourcing may have an impact of introducing layoff fears because the employees feel that they are susceptible to losing their jobs. Outsourcing of jobs may also have a detrimental impact on the performance of an organization because it will compromise performance and thus have a negative impact on the quality of products. Eventually, customer satisfaction will be compromised.
Outsourcing should be avoided at all costs because outsourcing with the sole purpose of reducing costs will be counterproductive since the reduced costs cannot compensate for the unsatisfied customers and poor organizational performance.