Research and Critically Evaluate

Introduction

Outsourcing has been identified as a highly effective activity in the current business environment. Outsourcing has been emerged to be a necessity for various companies in the developed countries like the USA, Europe and others. Outsourcing has been made out of the words known as ‘out’ and ‘sourcing’, which means the transfer of responsibilities, work and rights to take decisions to someone else (Kleinknecht, 1998). The primary reason for outsourcing is to use the techniques, innovations of science, technologies and cost effective resources available in the market to develop competitive and qualified products that will satisfy the demands of the customers. In other words, outsourcing of processes helps in better utilisation of the resources available in the international market (Nathan and Kalpana, 2007). The process of outsourcing is beneficial for both the parties because the party providing the work gets cost advantage and the party doing the work gets better earning opportunities (Standing, 1999). Hence, it can be seen that outsourcing has several benefits that make the process one of the most used perspectives of the current business scenario.

The paper has been developed to present various theories related to the outsourcing of employment experiences of workers internationally. The study starts with a literature review that explains the current scenario of outsourcing in the international market.  In the last decade, the concept of outsourcing beyond the geographical boundaries has increased at an immense rate. The major factor supporting the growth of outsourcing concept is the high pace of globalisation and technology development (Kleinknecht, 1998). Hence, the paper will analyse the factors support the sourcing and outsourcing of employment experience of workers internationally. Along with that, the paper will argue the importance of outsourcing and its consequences on both the parties as well as the economy of the country. Hence, the primary objective of the study is to analyse the impact of outsourcing and argue how important outsourcing is for the business organisations in the current market scenario.

Analysis and Argument

Offshoring of work and employment has become one of the latest global trends in the international labour market. The significant offshoring boom has provided a wide range of business and services opportunities in most of the developing countries such as India and China. The emergence of latest technology and advanced communication systems have allowed work and employment to be outsourced in different parts of the world (Chesshire, 2006). Meanwhile, the developing countries have announced themselves as the huge service producers destined for developed countries such as USA and UK. Primarily, the Business Process Outsourcing (BPO) and Information Technology (IT) sector foreign companies have embraced their services to developing countries such as India through the offshoring process. The US and UK based IT and BPO firms have seen the opportunity in the developing markets to utilise the employment outsourcing. BPO companies have introduced call centre work organisation in the target market for successful work and employment outsourcing (Patrickson and Ranzijn, 2013). In work and employment offshoring, three practical models such as professional services model, the Taylorised mass-production model and hybrid mass-production model have been applied to manage the workflow and employees. Through the identification of customer-oriented knowledge, significant work and employment outsourcing techniques have been introduced to get the most suitable result. 

Currently, work and employment outsourcing have broadened up the career opportunities providing significant employment conditions suitable for a workforce. The work and employment outsourcing have delivered equality of opportunity for career developments in the overseas market. However, despite the rapid growth in the offshore services sector, some issues and criticism has been faced (Taylor, 2005). Primarily, the sector has been criticised to offer jobs to a narrow labour market that includes high educated, urban employees with technological knowledge and abilities. Meanwhile, there are not so many opportunities for the low-skilled workers in compared to skilled labourers in employment offshoring. In the meantime, the W&E outsourcing needs to deal with issues like the complexity of work and quality of employment to keep the sustainability (Bruye?re and Barrington, 2012). However, offshore services and employment sector have been primarily associated with businesses such as BPO call centres and IT. In most of the BPO, data entry jobs and customer services over-the-phone have been included. In IT sectors, skilled and technologically sound employees have been preferred to complete the tasks.  Evidently, the UK and US based organisations have preferred the work and employment outsourcing in developing countries to access the vast pool of flexible labours at a low-cost margin (Oikelome and Healy, 2007). Companies can hire efficient and highly qualified employees in the developing market for the outsourced works to be completed.

The common understanding of current global offshoring of work and employment can produce a standard legacy behind the objective of outsourcing. In developing markets, the BPO and IT firms have found significant growth opportunities through outsourcing. Hence, to minimise the cost of management, work and employment outsourcing has been identified as a crucial business model (Taylor et al., 2009). Through the outsourcing process, the customised workforce can be hired to complete quality services providing customer satisfaction. In this way, high-value business customers can be retained. 

There are several advantages and disadvantages of outsourcing of employment experience of workers internationally. One of the significant advantages of outsourcing is the focus on reducing cost of production that further leads to lower price of the products and services (Edwards, 2013). Furthermore, outsourcing helps to focus on core activities, improving performance, access to experience and flexibility. It has been believed by different authors that by passing over the non-core activities, a company can focus on the core activities (Kleinknecht, 1998). But, in the recent days, the concept of outsourcing has changed and many reputed companies have started outsourcing their core activities to the third parties to seek cost advantages and use resources available all across the globe (Cunningham and James, 2009).

Furthermore, looking from the point of view of the third parties, it can be seen that the working companies in the developing countries get benefited from the outsourcing processes. The unemployment level in the developing countries is quite high in respect to the unemployment level in the developed countries. Hence, outsourcing process provides employment opportunities to the cheaper priced labours in the developing countries (Kleinknecht, 1998). Another important advantage of outsourcing is that the outsourcer company can seek improvement in performance without taking much pressure of employing new workers and seek economies of scale. In the case of service providers, they can directly focus on improving the quality of products and services without taking much load of internal or external operations (Dawson, 2013). Hence, outsourcing is a process of rendering responsibilities to the third party that increases the efficiency of the job and provides various benefits to both the parties.

It is known that advantages and disadvantages are two sides of a coin. Therefore, outsourcing has certain disadvantages that must be considered. The primary disadvantage of outsourcing is the loss of managerial control over the employees working on the production of products and services (Cunningham and James, 2009). The second disadvantage of outsourcing is the audit and execution of the outsourced processes. There is a term of confidentiality and security that creates problems to execute and audit the operations (Dawson, 2013). The third disadvantage is that people expect to get better outcome from the outsourced process and it do not always meet the expected quality of outsourced company (Crompton and Harris, 2008). There are several situations at which the work quality seems to be poor than the expected quality because of lack of control over the operations. In some cases, the service company may not receive payments due to fraudulence. It becomes difficult for the service company to claim the amount because of different in geographical regions. Hence, it can be seen that there are several disadvantages of outsourcing employment experience of workers internationally.

Work and employment outsourcing have created significant opportunities for both the employers as well as employees. First of all, technological advancement and latest communication methods have been applied through the offshoring of work and employment to upward labour mobility of the developing countries. Along with that, work and employment outsourcing have contributed to the labour market creating new job opportunities for the skilled people. The latest outsourcing model of work and employment has opened up new possibilities for developing service lines to operate their business in the other part of the globe (Bloor and Sampson, 2009). Invariably, the outsourcing of work and employment has provided a new standard to globalisation the business. Furthermore, the outsourcing has provided transferable skills to the human resources that can be effectively utilised for career perspective. As employability is a significant indicator to access the job market of a country, work and employment outsourcing has contributed to improving the employment opportunities (Harrison and Kelley, 2013). Though the opportunities have been provided to a narrow part of the labour market, skilled workforce has secured employability. 

The external labour markets of the outsourced country have been blessed with latest job openings providing future career prospects for qualified people. Meanwhile, employability can be directly linked to multi-skilled knowledge variables to access massive job opportunities. In skilled services such as IT operations, prominent training and development must have been provided to the outsourced employees to get the job done in an efficient way. Primarily, the quality of the work must be kept intact (Office, 2010). In order to evaluate the types of employment through work and employment outsourcing, local employment alternatives must be identified to increase job prospects. In lower-level BPO activities, the significant workforce can be hired providing minimum salary. Such facilities will be considered as an additional benefit for the organisation outsourcing the work and employment. Through the analysis of the perception of employment, outsourcing of work and employment can manage to increase the demand of skilled labours in the developing countries. As a result of that, the educational structure of the countries may be improved to cope up with the supply-demand equation of the job market.

Arguably, the transnational operations of the multinational BPO and IT companies have promoted the work and employment outsourcing to the major regions of the emerging economies such as India and China shifting from the original location of UK and US markets. Hence, the outsourcing of work and employment has become a global phenomenon providing a chance to the business corporations to be globalised in an effective way (Beerepoot and Hendriks, 2013). Predominantly, the low-cost labour process and technology-driven work and employment offshoring method have brought lots of business prospects for the business giants operating in BPO and IT sectors. Being a massive market, India has been identified as one of the primary choices for the outsourced countries. By promoting crucial business practices and cultural environment, a sustainable business procedure has been constructed to utilise the skills and resources of the developing market (Upadhya, 2009). Along with that, offshoring corporate decisions can distribute the responsibility in an effective way to get the job completed. However, offshoring work and employment have required strategic monitoring facilities to complete the entire task in a prioritised way.

Conclusion

The outsourcing process has evident immense growth in the current decade due to increased globalisation and innovation of new technologies. Internet has joined the global industry together to work as a single unit. It has inter-linked the regional markets that have provided different benefits as well as negative impacts on the global market. Arguing the consequences of outsourcing of employment experience of workers internationally, it can be seen that off-shoring of process has become a necessity of the current business environment. It is important for an international organisation to outsource the work to reduce it work loads and seek market expansion. Furthermore, outsourcing helps in seeking economies of scale and improves the performance of the organisation. The service companies are also highly benefited through the outsourcing process. The service companies get more works to seek growth and financial expansion. Outsourcing also supports the employment needs of the developing and underdeveloped countries. Hence, outsourcings of employment experience of workers internationally are crucial ways of earning foreign revenue and seek economic balance for the organisations in the underdeveloped countries.

References

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