Thesis: Assessment of Impact of Outsourcing on Human Capital

Sample Thesis Paper

While outsourcing serves to create an opportunity for the expansion of businesses, it can also have a negative impact on the immediate community in certain cases. Such cases are generally observed in cases where offshore outsourcing is carried out. Unless an adequate restructuring takes place, employees can lose jobs as a result of the closure of the outsourced organizational function (Zhu, Hsu, & Lillie, 2001).

For instance, in the case in point, outsourcing the development of a specialized part that requires the services of a large volume skilled labor for its production can result in an increase in the unemployment rate in the immediate community. In this regard, it is imperative for the organization to ensure that the community is in a state where it will comfortably adjust to any unemployed personnel that enter the market in search for job opportunities.

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