Outsourcing the positive and negative affects; purchasing and supply Research Paper

Outsourcing the positive and negative affects; purchasing and supply chain management - Research Paper Example Although, the argument that denies the inevitability of phenomenon claims it to be a major cause of unemployment in America, but the positive impact of outsourcing on the economy cannot be rejected altogether. As a matter of fact, there is a fair amount of subjectivity in the questions like where, when and how outsourcing should be employed and the detrimental effects of outsourcing on US job market are a reality but another reality is the importance of these outsourcing companies to the US economy. Although cost is the key factor while making a decision of outsourcing, it must also be a strategic decision at the same time. A strategic decision takes into account the capabilities of companys resources, challenges at hand, benefits and key factors that favor outsourcing. The strategic outsourcing prevents the outsourcing of goods, services and labor that are critically important to the function of the company. At the same time, strategic outsourcing can take into account the expected impact of an outsourcing decision on national economy. The establishment of a separate formal Officials authority might be a good idea to evolve a regulating mechanism and to strike a balance in outsourcing decisions. Nevertheless, purging it altogether is not an option. Pacing with rapid changes in business dimensions has become a demanding challenge for business leaders in diminishing geographical limitations. Technology in general and cutting edge communications in particular drastically redefines business operations in terms of resources. The globalization has vast and vivid repercussions on business domains and business leaders have to be very knowledgeable and current on prevailing trends in human resources, purchases and supplies to manage these effects in their specific domain. The globalization of businesses and advancement in technologies to support these global business operations have reduced the geographical limitation of