Outsourcing is the act of employing a 3rd party to perform services and make products that would have been made by the organization’s own work force and staff. It is fundamentally executed as a cost-cutting measure, which can result with positive and negative effects on the organization itself, the 3rd party where the practices are outsourced and the area where this 3rd party performs the outsourced practices. The act of outsourcing is a big subject to debate in numerous countries. The ones that oppose this practice argue that this practice has caused the loss of many residential employments, since it creates more jobs in the 3rd party’s residential country instead of the main company’s country, on the other hand, supporters say it motivates companies to allocate these practices where they would be handled more efficiently and that outsourcing keeps up the idea of free market economies on a worldwide scale. “the strategic use of outside resources to perform activities traditionally handled by internal staff and resources.” FBangladesh Is the second largest clothing industry in the world, it is second only to China’s in size and utilizes, it employs around four million individuals, mostly women in roughly 3,500 manufacturing plants.
It represent about four-fifths of the nation’s exports and contributes over 10% of GDP of the growing south Asian country. Bangladesh’s instant pieces of clothing make up 80% of the nation’s $24 billion yearly fares. The nation has around 4,500 piece of clothing factories that make clothes for famous global stores such as Tesco, Wal-Mart, J.C. Penney, Kohl’s, Marks and Spencer, H&M, and Carrefour. It is the world’s greatest exporter of clothing after China, with articles of clothing making up 80 percent of its $24 billion yearly exports.
Outsourcing has benefited bangladesh by creating many job opportunities when MNCs set up their industrial facilities in the bangladesh, many substantial pool of work specialists are required for its manufacturing procedures. This has helped its unemployment rates decrease, when the citizens have jobs they are able to earn money to invest on their needs and have the capacity to manage the cost of these essential necessities, This has improved their standards of living, personal satisfaction and their quality of life. As more MNCs outsource their practices to a company that bases their factories in bangladesh, it helps to improve bangladesh’s economy and draw in outside investments. With an enhancing economy, bangladesh is then able to contribute more on their local infrastructure, thereby enhancing the standards of living and quality of life of its people. However outsourcing can also have a great negative effect on bangladesh.
The companies that base their factories in bangladesh are usually low-cost factories, meaning that they don’t invest much of their earnings into safety procedures and good machinery to enhance the safety of its workers. There are sometimes important issues that come with the practice of outsourcing, working conditions for employees in these organizations can to a great degree be troublesome. A good example to support this claim is the example of the company Foxconn.Foxconn makes items for apple, amazon, hewlett packard and other well known companies, workers there frequently need to rest in residences that have up to thirty individuals living in a three bedroom room. workers also frequently have to work long periods of time in order to gain very low amount of money, they work around eighty hours each week. Furthermore, workers normally have to stand when working, and are only permitted to use 33% of a seat to sit on in order to keep them more focused.
Life at these kinds of organizations can be exceptionally troublesome for the workers, and it is something that has to be considered when making the decision of outsourcing part of a business’s supply chain to a company that bases their factories on a developing country. Another key point to consider is that occasionally the factories and buildings in which these workers work frequently aren’t safe. These nations have less building regulations and some of the time accidents tend to happen. A famous tragic incident that took place in one of bangladesh’s low cost factories happened in April 24th 2013 in the Rana plaza factory close to the Bangladesh capital of Dhaka, killing at least 117 individuals and at least 200 individuals were harmed as they rushed to escape the factory in Ashulia, this was the highest death toll in a Bangladeshi factory fire.
The fire apparently caused by a short circuit, began on the ground floor of the nine-story clothing factory, catching the workers on the floors above. Because of the expansive measure of texture and yarn in the industrial facility, the fire was able to rapidly spread to different floors, complicating firefighting operations. It was a building with an excessive number of floors and too much heavy equipment for the structure to withstand. The tragic incidence shook Bangladesh’s $28 billion clothing industry, the second biggest on the planet behind China.
It attracted thoughtfulness regarding horrendous conditions for factory workers, and brought up issues about transparency in the worldwide article of clothing industry in which they work. “Tazreen was given a “high risk” security rating by walmart after a May 2011 audit conducted by a “ethical sourcing” assessor, according to a document posted on the website of Tazreen parent organization, the Tuba Group.” More than 300 processing plants close to the capital close for right around seven days earlier this year as employees demanded to have higher wages and better working conditions.