HR Management Essay on Outsourcing: Diversity and Multiculturalism

Outsourcing is a practice that has helped many organizations not only to save on cost but also to obtain services of an expert, which helps streamline operations. Organizations mainly outsource functions that are not crucial to the business to enable entities to concentrate on the core activities of the firm to achieve efficiency (Crize, 2014). While outsourcing has some advantages, it too has its disadvantages. This paper analysis a situation where a hospital has to choose between outsourcing and continuing to provide services internally.

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I would go for the idea of outsourcing reading of radiological images to the Indian company. Furthermore, the option helps in achieving economic scale and operations. The fact that the radiologists will be available throughout means that the images will be read anytime they are sent making it possible for the hospital to analyze the results and ascertain the health conditions of the patients immediately. Consequently, it is feasible to have an accurate diagnosis of the patient early enough hence increasing the chances of the patients obtaining the right treatment on time. Similarly, this will save the hospital some costs including that of purchasing supplies and paying more staff to handle the task internally. While the hospital may have to lay off some workers who may then lose an income and may perceive the hospital negatively, the decision will be appropriate since the firm is looking to become profitable. After all, it is the business of a business to make profits (In Erisman & In Gautschi, 2015). Hence, cutting on costs of paying employees and obtaining supplies will help the hospital, which is a business to increase its profits.

The second option of outsourcing medical records transcription to the Pakistan Company could also be a viable solution. Moreover, it will help the company lower its current cost from 22 cents per line to nine cents per line with the Pakistan Company. However, this decision may not be so appropriate for the hospital to make. Apart from saving on costs, there is no other significant advantage of this choice. This decision also poses a risk because of the language difference, which means that there could be possible errors during transcription. This can mean a huge cost for the patients since the results presented will not be accurate which means that the patient may end up receiving poor medication. While the decision would help the hospital to save on costs, it is required that it remains ethical in providing the best services to the patients. Having patients receive wrong treatment due to incorrect transcriptions will violate the moral principles of the hospital. The hospital must also be concerned about the society around it. Taking business away from the local community will affect not only the local economy but also the people providing these services. Any company must maximize value for its stakeholders (In Erisman & In Gautschi, 2015). The local community falls under this category.

Conclusion

To conclude, outsourcing is a practice that has helped businesses to save on costs, be able to concentrate on core activities and get expert help. However, every business must make a proper evaluation before deciding to outsource to ensure that it is not the only one benefiting at the expense of its customers. For the case of the hospital, outsourcing reading of radiological images is a viable solution to help reduce costs and attain efficiency. However, outsourcing transcription services may not be appropriate since this may interfere with the services rendered when language barriers come into play leading to wrong transcriptions. Therefore, it must take into account ethical consideration deciding to outsource.

References

Crize, T. (2014).What is Outsourcing? Know All about Outsourcing. Createspace Independent Pub.

In Erisman, A., & In Gautschi, D. A. (2015). The purpose of business: Contemporary perspectives from different walks of life.