Rather, with increased globalization in the new economy, supply chains will compete against supply chains. As a result of this change, corporations can no longer work in isolation and expect to succeed. Success requires collaboration. Teaming up with the right partners is essential to increase speed, promote innovation and gain market share. (http://www.sdcexec.com/article/10289694/impact-of-globalization-in-creating-sustainable-competitive-advantage).
Course Arguments.
In our course readings in Unit Four, there were two strong arguments in favour of outsourcing: .
1) Corporate growth through lower labour costs, better efficiency, productivity, quality leading to higher revenues.
2) Competitive advantage through skilled labour, and superior service.
Both arguments are strong and are supported in the readings through documented case studies and research.
There were also two arguments against outsourcing in Unit Four readings:.
1) Outsourcing is unpatriotic.
2) Companies that were poorly prepared to outsource and communicated poorly with their outsourcing partners would be likely to make large, costly errors. .
Although politicians and the public may feel outsourcing local jobs is unpatriotic, this argument has nothing to do with whether it benefits corporations. As a matter of fact, the article goes on to state that when outsourcing is executed well, it can save a company significant money, allowing it to invest in other areas of the business to obtain a competitive advantage.
Other Arguments.
One legitimate argument against outsourcing is the environmental costs, including the greenhouse gas costs of shipping goods across the ocean, as well as costs stemming from the fact that factories in other countries do not have to meet environmental standards that area as high as in North America. .
A study published in 2007 in the U.S.-based journal Environmental Science & Technology showed that between 1997 and 2004, imports into the U.
