MBA Literature Review on Global Outsourcing and Its Impacts on Organizations

This article is based on the all the aspects of global outsourcing. The author has made an effort to analyse the process of global outsourcing right from the time it began. The author writes about the need of global outsourcing and the advantages and the disadvantages that are associated with it. 

The author states that global outsourcing has a number of advantages – it enables companies to reduce cost of operation, it establishes a parallel economy and provides income for developing companies, it enables companies to tap into the cheap labor resources and enables them to capture new markets and to serve their customers better.

However, the author states that global marketing also has certain disadvantages – it exposes the business structure and strategies of the companies and it also prevents the companies from controlling the outsourced activity. It also contributes to the loss of future talent. The author writes about outsourcing to different countries versus outsourcing to local (domestic) business.

 The author sheds light on the need for outsourcing – this is not always cost reduction. Companies may outsource due to a number of other reasons too – they may lack the resources or the talent themselves.

After analyzing the article, the researcher concludes that the author has written the article in a very detailed style. Still, the researcher feels that some groundwork is needed to obtain a clearer picture. Hence, according to the researcher – a survey will be much more helpful for future study.

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