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Cause/Effect essay writing: Outsourcing

In business and economics, outsourcing means: the contracting out of a business process (e.g., accounting, human resources and customer support) and/or other functions (e.g., manufacturing and packaging). Outsourcing can be done within a country (economy) or from one country to another (relocating a business process to an overseas country — from the UK to India — is also known as “offshoring.” Outsourcing is also the practice of handing over control of government services to private sector businesses.


The key reason for outsourcing is to ‘reduce costs’ (e.g., to avoid high taxes, high energy costs, high production and/or labour costs and strict government regulations).

Presentation: Outsourcing


Outsourcing is changing the ways businesses operate around the world, summarise the main causes and then discuss two key effects.


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Outline paper

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VIDEO 1: “Outsourcing, Pros and Cons”

Source: Shum, T. (2011). Pros and Cons of Outsourcing. Retrieved from, youtu.be/90a2qHYqMoU
Notes: turn on “Substitles/close captions” to read the transcript  Duration: 07:40

Questions related to Video 1:

1. What are the three key advantages of outsourcing?

2. What are three main drawbacks of outsourcing?

VIDEO 2: “Outsourcing, Disadvantages”

Source: OnlineMBA (2013). Why Outsourcing is Bad for Business. Retrieved from, youtu.be/V7fsEIp2r_8
Notes: turn on “Substitles/close captions” to read the transcript  Duration: 03:38

Questions related to Video 2:

1. What did General Electric do, and why?

2. What did Apple do, and why?

3. What problems did Boeing face?

4. What was the advice Samsung gave?