There are many benefits of outsourcing including less production cost and being more focus on key activities. However, as seen in the Sears example, outsourcing is seemingly bringing some bad influences as well.

Sears laid off 245 workers because it planned on outsourcing and focus more on its core retail business. Outsourcing can effectively improve the status of company and helps bringing profits for the company but this act is not so thoughtful to the local workers. The demand for local workers shrinks as more companies are outsourcing. Other than leaving number of workers under unemployment, the employees will also be demoralised as they do not have a guaranteed job. It makes the workers less productive and decrease the working efficiency.

On the other hand, companies use less money to hire the outsourcing workers but those workers are sometimes unqualified for the job. Those outsourcing workers apply the job with fake qualifications that match the requirement of the company. In the meantime, they are not monitored by the managerial class. The only outcome is the decrease in productivity.

http://hbswk.hbs.edu/item/7152.html

http://business.financialpost.com/2013/08/20/sears-canada-layoffs-india/

http://www.cbc.ca/news/canada/british-columbia/insiders-say-canada-scammed-by-foreign-worker-industry-1.1358803

http://www.rsc.org/chemistryworld/Issues/1996/December/outsourcing.asp