This is a Test

Before it gained its notorious reputation and provocative implications, outsourcing once referred to the seemingly innocuous practice of turning over non-critical functions of a business to a contracting company that specialized in those activities. The primary purpose of outsourcing is to provide a better focus on core business functions by improving responsiveness, quality, and flexibility. In other words, non-core functions should, and must be accomplished as cheaply and efficiently as possible in order to achieve lower production costs, and conserve valuable resources. At first, outsourcing only entailed secondary functions such as cleaning up the office or running a cafeteria. Then it started to include higher value jobs further up the

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While a responsible corporation must be committed to maximizing shareholder wealth, care must also be taken to ensure the welfare of its employees. It must be recognized that absolute dollar savings in the form of cost cutting may not translate into overall cost reduction, because other implicit costs arise if employees are unproductive. Justice in teams: Antecedents and consequences of procedural justice climate.

While the company has a responsibility to minimize production costs, it still remains essential to treat their employees in a fair and caring manner. Because retrenchment creates a lot of uncertainty and angst, it is definitely unpopular amongst employees. According to Rosen Sharma, CEO of Solidcore, a startup company that makes backup security systems for computers in Silicon Valley, states that if he does not outsource, venture capitalists these days would not fund a single nickel. com/Career/1726/CWD010412STO59551/

10. Unfortunately, outsourcing activities often involve the retrenchment of local, and usually more expensive, employees replacing them with contractors or foreign workers.

It is true that retrenchment of local workers may be due to the result of outsourcing. The moral and ethical disadvantages of outsourcing can indeed be overcome if employees are able to change their mindset for the better.

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Approximate Word count = 2722
Approximate Pages = 11 (250 words per page double spaced)

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