Article review and match the

Article Review
Business Studies
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Summary
Many factors are contributing to domestic outsourcing among the small and medium companies in the United States. The different time zones between America and Asia has pushed the firms to outsource to companies in the same continent (Lohr, n.p.). Besides, the language barrier and language between the locals and offshore companies in foreign companies reduce the competitiveness of corporation. It is essential to note business are adopting mobile apps and websites as an interactive platform for the employees and the potential customers. For the company to take advantage of the mobile apps and websites, it requires employing domestic workers that understand business needs and the customer’s behavior. The increment in demand for technical services in companies has also led to the hiring of employees in the local labor market.
Political reforms that focus on creating employment for residents in America has been crucial in fostering domestic outsourcing (Lohr, n.p.). Notably, the local talents have excellent skills offer quality services to the companies. The government has also been keen on curbing immigration to mitigate the level of unemployment in the country. The other force promoting domestic outsourcing is the rising labor rates in India and other countries that have been a haven for outsourcing (Lohr, n.p.). Notably, a significant number of companies that have adopted domestic outsourcing are a small and medium corporation.

International companies have outsourced a substantial portion of their operation to offshore labor markets in Asia though some companies have plans to localize most of the activities in the domestic labor market. Overall, the rate of domestic outsourcing is expected to growth at a high rate in the foreseeable future.
Relevance of the Article
Business seeks to maximize profits by cutting the costs and increasing the productivity of the factors of production. The increased rate of domestic outsourcing is aimed at creating opportunities and benefits to the business. For instance, a company attains flexibility to lobby for low costs from local suppliers within the bounders as compared to corporations that are outside the continent. There is also increase performance as the domestic workers can understand the business needs and the consumption pattern of the potential customers. It should be noted a company focusing on a homogeneous labor market can create competencies due to seamless culture. Hence, the article is crucial as it outlines the benefits that a company can gain by investing in domestic companies in comparison to far off continent with different language and culture.
However, a large number of the companies have operations in Indian and other Asian countries. Such corporations are avoiding the risks associated with outsourcing to domestic markets. In some cases, a business could lose control by outsourcing operations that are critical to the business growth. A firm can also lose competitiveness by offering capabilities to other domestic firms through outsourcing. For a business to reduce the risks of outsourcing, it has to develop some strategies as noted in the article Nexient has minor interest in Bill.com to reduce potential competition in future (Lohr, n.p.). Another approach is the use of multiple suppliers to avoid concentration of capability to a single firm that might develop competencies in the long run.
The article is relevant as it provides insights on whether to make or buy an input required in the business. A firm should analyze the costs of labor, efficiency, expertise, language barrier and culture in making outsourcing decision. Thus, the article is crucial in business management and developing competencies in a firm.
Work(s) Cited
Lohr, Steve. Hot Spot for Tech Outsourcing: The United States. 2017. Print. Retrieved from https://www.nytimes.com/2017/07/30/technology/hot-spot-for-tech-outsourcing-the-united-states.html