Cited: www.businessweek.com/articles/2012-03-15/outsourcing-a-passage-out-of-india
Cited: www.businessweek.com/articles/2012-03-15/outsourcing-a-passage-out-of-india
Recently, there have been many debates over the important issue on how companies and governments in the past decades have been increasingly sourcing a wide range of tasks to offshore sites. A group member of ours is an overseas buyer for his company. He is fortunate enough to experience what that is like firsthand. As a buyer, he is required to travel to different countries where large labor and talent pools are available at lower costs to try to procure goods and services at the lowest price, in order to help his company reach higher profits. Many Americans believe that outsourcing is one of the main reasons that the unemployment rate has been increasing in the United States, so they complain and publicly criticize the companies and governments who outsource jobs abroad. Also many U.S. workers (from white- collar well educated individuals to semi-skilled workers) have become more concerned about the security of their jobs due to increasing global economic integration since the early 2000s.…
The Effect of Outsourcing on the U.S. Economy: Are China and India Threats or Opportunities…
Offshore outsourcing offers cost savings through reduction of salary and other related costs. "Cost saving is not the only benefit of a properly managed outsourcing relationship. Many companies seek additional benefits such as reduced time-to-market, improved product development process, improved schedule management and predictability, and increased flexibility of staffing models" (DeMassi, 2004). Outsourcing helps to reduce time to market when developmental supply expertise and skills are not otherwise available inside the organization. A good outsource relationship is a partnership based on understanding and contractually agreement. This ensures all products and services will be processed to the companies agreement. Increased flexibility in staffing deals with employees changing jobs or taking new responsibilities. "The advantage for offshore firms is created by the different costs for hiring well-educated and capable software engineers. The annual…
These days we hear a lot about offshoring. But offshoring has become a hot topic that it was even discussed in the recent presidential debate. There are so many questions come to us when we talk about outsourcing. Sending jobs to countries who don’t ask for much is easier than paying Americans who ask for what will get them through the day. Workers in countries such as china and India are hard workers. Many people do not realize that outsourced jobs leave many Americans unemployed. Another problem is that we have more than Americans relying on us. Outsourcing affects everyone. That’s why many young Americans are going to other fields that are the less likely to be offshored. Information Technology jobs overseas also run a security and privacy risk. Risks such as these cause a negative impact on outsourcing.…
Many corporations are experiencing significant cost savings by outsourcing work to developing countries across the globe. Some advantages of global outsourcing are: technically skilled, inexpensive labor;…
Outsourcing has been practice for decades, it happens when companies or business contract a third party, someone outside the business, to produce goods or provide services. Outsourcing can be local, within the same country or offshore, outside the country. Some of the job areas companies outsource are Accounting, Customer Services, Human Resources, Information and Technology and Payroll. Outsourcing supporters affirm that this activity provides substantial cost savings to businesses, through paying less to others do their job, at the same time they can lower prices of goods and services. Although outsourcing brings benefits to a company, this activity may limit the quality of products and the availability of…
Outsourcing is weakening the nation’s job-creation engine, and leaving thousands of newly unemployed workers here in the United States in search of work. With the number of companies outsourcing jobs continually increasing, it becomes a much larger issue for the U.S. workforce to find a job when so many are being outsourced overseas. Unfortunately this trend is likely to continue to cause serious harm in the United States if it continues to go unmonitored. Foreign and American governments have contributed to the problems caused by outsourcing in a number of ways. Some of the more visible ways are a lack of monitoring and data gathering, ceasing to enforce any pressure or penalties upon companies outsourcing jobs, and U.S. jobs being outsourced due to foreign incentives. These three issues are a large contributing factor to the current problem of outsourcing in the United States and its negative impact on the American workforce.…
pg. 120). Outsourcing can be defined as having activities that were formerly done inside the organization now performed by an external supplier. The most common motive and proclaimed benefit of outsourcing concerns cost reduction, due to a supplier’s superior economy of scale. Other motives are release of resources and avoidance of investments (Bengtsson & Dabhilkar, 2009). Outsourcing is often thought of something that major companies and corporations do, but even small companies outsource activities such as payroll, customer care, and information technology. Other activities that are often outsources are marketing and research and development. Examples of outsourcing activities that tend to be outsourced are street maintenance, policing, and public safety. Other types of businesses outsource activities such as cleaning and catering services. With business globalization and the advances in information and communications technology, this has led to a growing trend for businesses within specific sectors to outsource abroad. With the attraction of cheap labor and minimal overheads, this appears to have overcome any worries pertaining to control factors (Ball, 2005). I have a family member whose company has recently started the process of outsourcing to their location in India. Prior to her relocating to TX, she and her family had been…
Since 2001, a devastating 3.2 million Americans have lost their jobs due to corporate outsourcing (Peralta). Outsourcing is laying off American workers in positions such as manufacturing, nurses, call centers, and even research/development; now, these jobs are still needed, so they send those jobs to other countries. Jobs are outsourced because other countries do not have minimum wages and therefore the extreme and desperately poor citizens will work for next to nothing. The debate presented by this is whether or not corporations should be able to lay of their American workers in order to have their work completed for a lower cost. Many people would say that it is a benefit because it makes products cheaper, it allows for drastically more…
Chithelen, I. (2004). Outsourcing to India: Causes, Reaction and Prospects. Economic and Political Weekly, 1022-1024.…
While the figure of jobless in the United States increases, the total count of jobs available in the nation decreases due to outsourcing of jobs to overseas countries that provide cheaper labor. All major corporations are continually looking for the easiest, cheapest, and quickest way to finish their products. These cheap sources of labor are currently coming from India and China. In a research performed on outsourcing by Working America, “Manufacturing employment collapsed from a high of 19.5 million workers in June 1979 to 11.5 workers in December 2009, a…
The rise of the global economy has also led to the rise of employment outsourcing. Labor is being treated much like goods. Employers are seeking to lower costs and increase profits. As with the practice of…
However, the service sector is greatly expanding and has started to assume an increasingly important role. The fact that the English speaking population in India is growing by the day means that India has become a hub of outsourcing activities for some of the major economies of the world including the United Kingdom and the United States. Outsourcing to India has been primarily in the areas of technical support and customer services.…
Globalization has been an indispensable part of the recent economic progress made by India. Globalization has played an integral role in the growth of outsourcing IT and business process outsourcing (BPO) services. Over the past decade, both foreign and local companies, have employed India’s highly skilled professionals to service clients in the US and Europe. By capitalizing on India’s lower cost but educated and English-speaking workforce, and utilizing global communications technologies, international enterprises have been able to lower their cost base by establishing outsource knowledge- worker operations in India.…
Today more and more outsourcing companies are turning to include knowledgeprocess outsourcing into their service portfolios eyeing the boom in the sector. Indian outsourcing companies are betting high on the available large pool of domain experts in the nation. India possesses a large pool of experts in various fields like engineering, medical, management, economy etc. Tapping into this talent pool has enabled the outsourcing companies to offer quality services to overseas clients at competitive prices.…