Has Outsourcing Increased or Decreased in 2014?

A Harvard Business School survey suggests that outsourcing increased in 2014, with almost half of survey respondents saying that their businesses prefer to outsource work rather than hire new employees to deal with it. The number of businesses relying on part-time workers has also increased, leading to fewer full-time openings being available for work-hungry American job seekers.

A recent survey of Harvard Business School alumni paints a grim picture for American workers. The results show that greater numbers of companies are relying on outsourcing, part-time workers and technology, rather than taking on or retaining full-time employees. The number of respondents that said they would rather replace employees with outsourcing increased to 49 percent in this 2014 survey. Only 25 percent said they preferred to take on full-time employees, rather than outsourcing extra work to other organizations.

Although the US employment rate continued to fall in 2014, wages have stagnated. Forty-one percent of respondents to the Harvard Business School survey forecast that wages and benefits will continue to fall. Taken together, these statistics create a forecast of tough times ahead for Americans who are looking for full-time work.

On the other hand, outsourcing has many advantages for businesses. One reason outsourcing increased in 2014 is that it helps businesses to make the most efficient use of their resources. Outsourcing reduces operating costs for businesses. It also ensures that vital business functions are handled by specialists with the necessary expertise, reducing the need to spend time and money training or recruiting employees to perform the tasks. Outsourcing also frees up existing employees to focus on their core roles, in which they deliver most value to the business.

Another reason outsourcing increased in 2014 is that technology is making the process much easier. In particular, IT outsourcing increased due to a rise in cloud services, which allow businesses to outsource their IT needs to specialist companies. It is not only domestic outsourcing that is on the rise; off-shoring of IT services is also becoming much more feasible, allowing businesses to reduce costs still further.

Outsourcing also reduces liability for businesses. By drawing up clear, legally binding contracts, businesses can protect themselves from the risk of legal consequences if something goes wrong when they outsource work. Choosing a reputable outsourcing company is also a must to ensure that the service is delivered as expected.

Although outsourcing has the potential to make life tough for American employees, many business owners believe it to be a necessity in today's economy. Outsourcing increased in 2014, and many experts predict it will continue to increase in the future. Along with stagnating wages and a fall in the number of full-time positions available, times ahead could be tough for workers.

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