Outsourcing

Outsourcing is the process of contracting an existing business function or process of an organization to an external independent organization, and ceasing to perform that function or process internally, instead purchasing it as a service. Though this practice of purchasing a business function–instead of providing it internally–is a common feature of any modern economy, the term outsourcing became popular in America. The opposite of outsourcing is called vertical integration or insourcing.

There is a lot of debate over outsourcing. Proponents insist that outsourcing saves money for companies, opens up opportunities and jobs at a higher level. Opponents against outsourcing argue that hiring people from foreign countries strips thousands of Americans of jobs, especially the skilled and semi-skilled workers. All the points seem valid in their place. Outsourcing is a difficult issue to tackle and everyone, the supporters and detractors agree on one thing – that outsourcing cannot be eliminated completely.