Outsourcing has had a significant impact on industrial relations, leading to changes in job security, wages, and working conditions. As companies seek cost savings, workers face uncertainty and challenges in maintaining strong relationships with employers.
A recent survey has revealed that 60% of companies are outsourcing at least one business function. Reasons for outsourcing vary, ranging from cost savings to accessing specialized expertise.
Outsourcing has undoubtedly increased efficiency and reduced costs for many businesses. However, it's crucial to acknowledge the downsides as well. Negative impacts range from job losses in local economies and reduced quality control to language and cultural barriers. This article examines these drawbacks, shedding light on the complexities surrounding outsourcing decisions.