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/writingtips/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 semifinished 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 Magorzata 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-thefragmentation-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]