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Benefits of Outsourcing

In: Social Issues

Submitted By miguelchavez
Words 695
Pages 3
Slide One

Hello, my name is Miguel Chavez and this is my presentation on the Benefits of Outsourcing for DeVry Univeristy ENGLISH 230. The purpose of this speech is to provide a business audience a clear perspective on the benefits of outsourcing.

Slide Two

First, lets discuss what is outsourcing? As found on ivestopedia.com outsourcing is a practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally.
It is sometimes more affordable to purchase a good from companies with comparative advantages than it is to produce the good internally.

In the long-term outsourcing presents cheaper prices on consumer goods, allowing individuals as well as companies to spend money in other ways.

Slide Three

Many individuals are not aware of the benefits of outsourcing. As seen in this graph from publicagenda.org 69% of Americans believe that outsourcing is bad for the economy where as 17% believes it helps.

Slide Four

Lets look at the benefits of outsourcing. The first is Cost. In order for companies to remain competitive, they must find the easiest way to reduce costs. Lowering labor costs is just one way of doing this; also boosting efficiency will help cost reduction.

“As a result of moving these support jobs oversees, a reduction in cost is seen for the company in the form of lower labor costs. This in turn will lower the cost of the goods and services to you, the consumer, and the company will remain competitive. This need for reduction in prices is consumer-driven.”

Slide Five

Continuing the discussion of benefits, free trade allows for any country involved to benefit because of comparative advantage. If a certain country can efficiently produce a good over another country than they have the comparative advantage. Each country should in fact work to

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