Week 4 - Benefits of outsourcing services - Running head...

Running head: Benefits of Outsourcing Services 1
Benefits of Outsourcing Services
Nahin Mustafa
HCS/370
February 13, 2017
Kathrine Crawford

Benefits of Outsourcing Services
As more and more US companies are outsourcing their human resources within the
country or overseas, it is important to understand how this is affecting their organizational
structure as well as the company culture. Organizational structure which is the system that
defines the hierarchy of an organization is extremely important as it defines who does which jobs
and who reports to whom. Also Organizational culture is the system of shared values and
believes of an organization that governs how all employees behave and perform their daily
activities within the organization. Though most companies decide to outsource their human
resource to receive benefits such as reducing their costs, they often do not realize the hidden
negative impacts that are associated with that decision.
Research shows that many companies in US are seriously considering to outsource their
human resource to overseas. This is primarily because of the cheap labor our developing
countries can offer. In addition to cheap labor, these companies can also be exempt from paying
high benefit costs that is common in the United States. Companies do not have to worry about