Explain this question: outsourcing is beneficial in the long term?

1. The outsourcing of jobs in Germany has been beneficial. I give you examples like BMW. The largest plant in their manufacturing of this brand is Spartanburg, South Carolina. The needed space because of Germany’s area and the success in their automotive industry created this need of expansion. BMW operates 30 plants in 14 countries on 4 continents. So exporting of jobs through growth has been a win for BMW. Other factors are that Germany is ahead of most countries in engineering, aerospace, infrastructure, automobiles, logistics, and technology. These areas and the fact that agriculture is less than 2% of total GDP has led Germany to expand beyond its borders and make those companies very profitable.

2. A have personal example of how outsourcing had a positive and a negative impact on my organization. BHP is an Australian oil company in which my organization does business with, for years BHP outsourced their work to my organization for a project down in Australia. It didn’t save BHP money to fly us out there from Houston to work on their project, but, our expertise got their project done in time and safely. By BHP outsourcing their work to my organization it caused a positive impact that lasted for years. This year with oil prices being down, BHP decided to stop outsourcing their work in Australia to us. BHP saved money by not flying technicians from Houston to do the work in Australia. What they saved in not using our services, turned out to be used to train local people in Australia to do the job for BHP. By BHP deciding to use local Australians to their projects it had a negative impact on our organization, basically losing the contract we had with BHP.

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Outsourcing is beneficial in the long term The consequences of outsourcing for various companies and organizations that practice it are not only limited to the level of competition in the business mar... View the full answer