Ben Westcott about the Risks and Challenges Assignment

Ben Westcott about the Risks and Challenges - Assignment Example I believe that irresponsible outsourcing can be detrimental to a company’s reputation. â€Å"Major companies, ranging from Apple to Nike, have suffered a backlash†¦ when it has emerged that their workers are not well treated in some of their supplying companies† (Westcott 2012, 1). Considering that a company’s reputation determines its competitiveness, companies must ensure that they outsource responsibly to circumvent scandals and exploitation. Companies that have outsourced successfully and lived to enjoy its benefits â€Å"†¦work closely with those other companies to ensure that their standards and working conditions are the same high level that they themselves would wish to prevail† (Westcott 2012, 1). Reading through the article, I could easily relate the Dhaka fire incident with a scenario which happened in the early 2000s when Apple was sued after it outsourced to companies that employed underage children to work in its factory. Inconsequential as it might sound, it was an unethical act which cannot be tolerated in the currently highly competitive corporate world and Apple really disappointed its loyal customers and shareholders by outsourcing to such a supplier. Several exceptional lessons stood out from the article. Firstly, outsourcers should build a better relationship with the external contractors. They external contractors, as well as the outsourcers, must understand the demands and expectation of each other. Through this, guidelines and standards will be developed and enforced, an act that furthers innovation and motivation which eventually improves the company’s products and effectiveness. Moreover, the external contractors are on the ground hence are acquainted with the constantly changing customer tastes, needs.