One example of outsourcing is Nike – which is making a deal with a company in VN to produce their shoes. And I am going to tell you the reasons for Nike to go that far.
Firstly, it’s a dozen of ways outsourcing helps companies save the cost. They are cheap labors, cheap input, low import tax as well as low transportation cost. They are because of the characters of population, economic, geography and so on.
The second reason is wasted time reduction. I means the cost they spend is not only cheaper but also give them more time to focus on researching or developing internal staffs. Because many production works like recruitment, training, welfare, management, working place and so on are delivered to the other companies.
One more thing is that it helps to create jobs and in some cases, it brings model working methods and new technologies to the second and the third nations.
So outsourcing is good but I got words that outsourcing products can not be maintained their quality. I think if a company is serious in this term they won’t let their test system be a toy, all unqualified products will be returned. So I’m sure that outsourcing companies still can maintain their products' quality.
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