Advantages and Disadvantages of Outsourcing for Outsourced Employee
Iman Nuraprianto
GLS 470 – 12TW1
Jennifer Zoller
Southern New Hampshire University
December 8, 2012

Abstract

Outsourcing is contracting with an outside party (vendor) to do a particular function. Basically, the function being outsourced is considered non-core to the business. This paper explores the advantages and disadvantages of outsourcing for outsourced employee. The advantages of outsourcing are more experiences, opportunity to get expertise in particular job, and manageable time & planning to the next job. In contrast, disadvantages of outsourcing are low salaries, poor employee benefits and uncertainty for continuing job. This paper describes, even though outsourcing discriminates outsourced employee, there are some benefits for outsourced employee.

Advantages and Disadvantages of Outsourcing for Outsourced Employee

What is the definition of outsourcing? According to Caruth, L. & Caruth, D., “Outsourcing is the process of contracting with an outside party (vendor) to perform company functions that were previously perform in-house” (2010). Outsourcing has been used by company in difference sector businesses, such as retail, manufacturing, information technology, banking & finance. Medforth argued that “outsourcing support a company to change magnitude in almost every aspects: increase in profits, productivity, business value, business performance and much more” (2011). In other words, outsourcing is a tool to improve company’s competitive advantages in almost every aspect, such as expenses, productivity, performance and profits. Specifically, companies use outsourcing is to reduce their cost and get more profits, while they have to maintain the quality of their product. According to Sudi, that practice of outsourcing is for cost