In: Operations Management
What is the responsibility of Western firms whose manufacturing
takes place in countries like Vietnam, Ethiopia, or Bangladesh. How
should that be sustainable?
Minimum 400 words
Outsourcing is the process or strategy by which many organisations contracts and sells out their major functions like manufacturing or production to specialised or efficient service providers who would then ultimately become valued business partners for the companies and business.
The major reason behind outsourcing was basically because of the emergence of more and more developed countries and the way they are conducting their business. As the business and the ideas to promote and make the business go stronger increased, the less important areas of business that only required manpower and no strategic or logical thinking like production, manufacturing or packaging related services and functions tends to become outsourced. Bigger and better western countries like America, UK, Canada, Europe etc tends to outsource their businesses to smaller and under developed countries like India, Bangladesh, Vietnam, Ethiopia etc. These companies tends to outsource to focus more on important and relevant areas of the company. This outsourcing is a beneficial way for the company to grow at a faster and cost effective as focus could be put into more important functions. On the other hand the businesses and the countries who are being assigned with these work gets money, resources, development, employment opportunities, growth, technology boost and other economical benefits which is a good and healthier point for the economical and sustainable growth of the world. But, every country or company outsourcing their work also have to understand and take responsibility of the ethical code of conduct and ethical trade and labour practices to make sure the world economy and difference shouldn’t make anyone feel harm or discriminated against one another.