Thesis: Why Organizations Outsource

Sample Thesis Paper

Outsourcing is commonly brought into use by businesses that wish to grow without having to expose their capital to direct and enhanced risks. Expansions are generally subjected to outsourcing in order to minimize risks. It allows the companies to acquire a cost-effective way towards expanding their core strength. The paper also revealed that outsourcing allows the companies to implement more broader strategies. It is not uncommon to find an organization exercising outsourcing as part of a restructuring or re-engineering scenario. By restructuring and/or re-engineering, businesses are able to take a stronger position in the market. This allows them to take on competitors who are stronger in the market who are larger in size or who have a wider consumer market.

The above discussion serves to show that Outsourcing can be as complex a task as it is feasible. While the utilities of Outsourcing remain undeniable, the very operation of Outsourcing can backfire on all of its pre-established objectives if it is not carried out while keeping certain prerequisites in context. Outsourcing cannot be considered to be an easy-way-out of an organization level problem since its implementation may show tactical advantages but a failure to adequately judge strategic implications may serve to undermine any tactical advantages achieved.

It was observed that in the case of outsourcing of mechanical parts, the outsourcing company enters into a long term liability that cannot be undertaken without first seriously considering the relevance of the parts for which the production is being outsourced.

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