What is critical analysis?

Critical analysis can be defined as the systematic evaluation of a text, idea, argument or message being conveyed by the author or originator of the text, idea or message in order to evaluate the effectiveness and validity of the viewpoints, judgments or conclusions presented by the originator or author.

A typical critical analysis exercise first introduces the text or topic being evaluated, and then summarizes the main ideas or viewpoints before analysing and evaluating the text, idea or message for flaws, relevance, and accuracy. A conclusion is then presented following the analyses.

Sweeney, T. and Hooker, F. (2005). Crafting the Critical Analysis. Webster University Writing Center. Available from: http://www.webster.edu/academic-resource-center/writingcenter/writing-tips/analysis.html [Accessed 31, January 2015]

Outsourcing is a sound business practice…

In their journal, Dolgui and Proth (2013) defined outsourcing as the act of obtaining semi-finished or finished products or services from an outside company if these activities were traditionally performed internally. Given this definition, the statement: “Outsourcing is a sound practice” often throws up a number of critical points. I have always believed that a business would be more positively impacted by contracting out its non-core business activities

In order to achieve the capacity to adapt to changing business landscape, a business must focus on its strengths and core purpose. According to Małgorzata Koszewska (2004), the most often discussed advantages of outsourcing are connected with improved financial performance. He noted, however, that equally important for any business is the recognition and reassessment of those activities which are not core. This situation requires precise identification of the line of business one wishes to follow and a careful analysis of its weak and strong points. No doubt that the process of outsourcing makes a good business practice. More so, the business objectives such as cost minimization and profit maximization are achieved with outsourcing since it helps to minimize waste from non-core activities and allows the business to focus on how to improve profits such as focusing on opportunity costs.

On the other hand, outsourcing does negatively impact the environment through fragmentations on employment relations. Particularly in the case of offshore outsourcing, companies may be tempted to ignore the activities of the vendors who exploit their employees in countries where labour law is weak. Jobs are often lost to lower earning employees who work for the vendor who is expected to deliver the product or service at a lower cost. And in most cases, expected low cost translate to low wages and poor working conditions. Babin (2008) stated that in the 1990s, Nike was forced to respond to pressure from activists regarding its low-paid offshore workers who manufactured high-price athletic goods for the very profitable company.

While the above arguments for, and against outsourcing remain credible, it is rather difficult to reach a conclusion on the validity of the statement without addressing ethical and social responsibilities of businesses. There must be a right balance where businesses have the obligation to do what is right, just and fair while deriving the benefits. Only then can outsourcing be considered a sound business practice

Acas Future of Workplace Relations. Discussion paper. [online]. London: ACAS. Available from: http://www.acas.org.uk/media/pdf/p/8/Outsourcing-and-the-fragmentation-of-employment-relations-the-challenges-ahead.pdf [Accessed 31 January 2015].

Dolgui, A. and Proth, J., 2013. Outsourcing: definitions and analysis. International Journal of Production Research, 51(23-24).

Babin, R. Assessing the Role of CSR in Outsourcing Decisions. Journal of Information Systems Applied Research, 1(2). Available from: http://jisar.org/1/2/ [Accessed 31, January 2015]

Koszewska, M., 2004. Outsourcing as a Modern Management Strategy: Prospects for its Development in the Protective Clothing Market. AUTEX Research Journal, 4(4). Available from: http://www.autexrj.com/cms/zalaczone_pliki/8-04-4.pdf [Accessed 31, January 2015]