What are some reasons for and against contracting out? Additionally, what are reasonable items to contract out?

Reasons for Contracting Out

Contracting out projects and tasks has been the solution to operational pressures for a long time. When the volume of work on a particular project cannot be completed within the specified time by the available labor force, contracting out helps in cutting down both short term and long term pressures (The Strategic Business, 2012). In other instances, a company may be lacking expertise in a particular field, hence the need for contracting out to complement the existing workforce. For short-term projects, it is expensive to recruit and develop the workforce. Additionally, employees may require obligations that may extend beyond the period of the project, thereby acquisition of external services cuts down costs. Finally, the contracting of services helps the company to concentrate on important issues and gives it the capability to maintain staff members for long-term projects (The Strategic Business, 2012).

Reasons Against Contracting Out

Governments have opted to contract for jobs to cut down costs. However, studies indicate that it loses more than it saves, and the system has forced millions of citizens into poverty. Governments lay off their employees for the contractors to take over. In so doing, people lose…

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