Outsourcing is used by businesses in order for cost savings and in order to increase flexibility. John Song Potomac MD explains that outsourcing isn’t just when you have your production done in another country, outsourcing also involves seeking a specialist in a particular field that you’re lacking in order for your company to be more successful. For example, companies can outsource a marketing agency if it is cheaper than hiring an in house agency. Outsourcing has originally evolved in Japan and nowadays; it has become a global phenomenon that continues to grow. Outsourcing is favored by organizations in order to cut costs in production and gain resources or a specialist’s knowledge. Normally the way outsourcing works is the workers are in developing countries and are paid only 10-20 percent of what a worker in a developed country gets paid. There has been so much inequality and so many issues with outsourcing due to the working conditions that these people are forced to work in. Countries that are developing are valuable resources for a developed country due to there being an unlimited supply of workers who are educated and searching for any kind of job.
Individuals like John Song Potomac MD aren’t fans of outsourcing due to the working conditions not being safe enough, losing a company’s cultural identity and risks of leaking any financial data or personal information abroad. These are the main reasons why some companies want to keep their production internal and not seek outsourcing. People who outsource their production are often greedy and don’t care about the lives of these workers as long as they make profit off the products being manufactured.
If it were John Song Potomac MD, he would make sure that these developing countries are getting paid at least minimum wage in order to reduce the poverty in these countries and also make sure that all working conditions are safe enough that they can pass inspections. There has been too many incidents where a warehouse in a developing country breaks down and kills workers or where workers are getting abused because they aren’t working fast enough. This needs to stop and if people want to continue outsourcing their production for different products, they should consider the lives of the workers and the working conditions they are living in.
If you want to outsource, at least do it properly by managing what you outsource properly and establishing different laws and rules in the workplace for efficient production.