Overview of the Controversy
The UK and the US have different views when it comes to outsourcing but the issues were primarily the same. The issue was primarily regarding the potential loss of employment for the locals where these businesses should have been. The UK was guarded against the idea of removing jobs from their localities and transferring them to other locations since the government believed in “British Jobs for British workers” (Kobayashi-Hillary, Outsourcing: This Election’s Forgotten Issue 2).
The US, on the other hand embraced the idea of outsourcing as a part of the global economy. They have recognized that businesses are a part and ...
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...parcel of the global market and have not moved to prevent companies from outsourcing. There are heated debates between those who accept outsourcing and those who do not. The issue of unemployment is real and has created fear of losing their jobs to a place that offers cheaper one (Ellis-Christensen 1). The UK government is gradually changing their stand with regard to their previous stand.
They are realizing that outsourcing is now becoming a trend that they cannot fight against if they are to keep being competitive in the global arena. (Kwintessential 1). They now see outsourcing as an issue of the survival of UK businesses and are now currently working to strengthen the outsourcing capacities and relationships of its businesses. According to the Philadelphia Fed Policy Forum in 2004, there is little evidence that show that “foreign outsourcing has not played a major role in the relatively slow rate of job growth during this recovery” (Mester 37)
The Outsourcing Process Generally, when talking about the outsourcing process, it simply refers to “the strategic use of outside resources to perform activities traditionally handled by internal staff and resources” (Handfield 2). According to Rob Handfield, the outsourcing process is composed of four steps. The process follows the following stems: Program Initiation, then Service Implementation, Final Agreement and Program Closure. Program Initiation refers to the planning stage.
This is where the company decides which of the aspects of their business they want to outsource. They set out goals and objectives that they need to accomplish and decide how these are going to be reached. Once they have decided on these, they will compose a draft contract which they will be showing to the outsourcing company or companies they have decided upon. Service implementation then refers to the activities required to be done in order to achieve what they have set out to do.
This includes the handing over of the department to be outsourced. In this stage, everything must seem normal to the outside. No significant changes in the quality of service should be observed. Final agreement happens when the contract has been finalized and signed by the parties that are participating. Once the outsourcing program is complete a Program Closure is to follow. This consists of the formal beginning of the contract and also the documentation of the agreement and information relevant to the agreement of both parties (Handfield 4).