Preview

Offshore IT Outsourcing

Powerful Essays
Open Document
Open Document
5393 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Offshore IT Outsourcing
Running head OUTSOURCING INFORMATION TECHNOLOGY OFFSHORE The Impact of Outsourcing Information Technology Offshore Strayer University Abstract This study explores Offshore IT Outsourcing by U. S. companies. Within the study, information will be provided on the details of Offshore IT Outsourcing including the advantages and disadvantages. It also evaluates different strategies for offshore Information Technology Outsourcing that could benefit both U. S. employees and employers. This study utilized qualitative information provided by a number of internet journal articles and other studies that provide research on the performance of Offshore Outsourcing. Within this study, library resources include electronic and computer database searches. …show more content…
They work to find ways to reduce costs without considering the economical or social impacts. The use of Offshore Outsourcing is one of the methods companies are using to increase their profit margin. Offshore outsourcing is the practice of hiring an external organization to perform some or all business functions in a country other than the one where the product or service will be sold or consumed. Reducing operating costs requires finding cheaper sources of labor, and these sources usually reside outside of the United States. Offshore Outsourcing is no longer the wave of the future it is the current direction most businesses are focused. While companies are rewarded for reducing their costs, it has resulted in the displacement of a large percentage of U. S. technical workers. This study proposes strategies that should be put in place by Corporate America to re-skill or refocus Information Technology personnel in other areas of the company instead of displacing them. Acknowledgement I like to thank God the author of my faith for designing me to be an African American female. No other country allows you to live out your dream to its fullest potential. More amazing, no other country allows you to have unlimited dreams with each being …show more content…
Executives of many U. S. corporations feel that the only way their businesses can stay afloat and remain competitive is to rapidly reduce their operating costs. Reducing operating costs requires finding cheaper sources of labor, and these sources usually reside outside of the United States. Offshore Outsourcing is no longer the wave of the future it is the current direction most businesses in virtually every industry are focused. Many companies using offshore outsourcing have reported that they have experienced at least a 30 to 40 cost savings as a direct result of offshore outsourcing. When offshore outsourcing first became a trend, it resulted in the displacement of a large percentage of U. S. workers, skilled and unskilled. As offshore outsourcing evolves, leaders of organizations are learning to leverage their offshore resources while transitioning their current employees to work on corporate opportunities in the business strategy that concentrates on market growth. Corporations use offshore companies to perform tasks that have been refined onshore, and they try to redirect their freed up staff toward new targeted areas. As a result

You May Also Find These Documents Helpful

  • Powerful Essays

    Tambe, P.B. & Hitt, L.M. (2010). How offshoring affects IT workers. Communications of the ACM. 53: 62-70.…

    • 2424 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    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.…

    • 3058 Words
    • 88 Pages
    Powerful Essays
  • Better Essays

    A United Kingdom study reveals more than 68% of organizations outsource a portion of products or services offshore. The same study indicates more than 50% of information technological work outsourced was below par. Additionally, more than 10% of work outsourced hampered production and profits. The research clearly projects outsourcing and profitability is realized on large businesses. Small businesses will not profit or meet standard criteria for outsourcing jobs (Gorg & Hanley, 2004).…

    • 2422 Words
    • 10 Pages
    Better Essays
  • Good Essays

    While outsourcing may be beneficial to some of the companies partaking in it, the general consensus is that it ultimately proves to be harmful to the American workforce. The act of outsourcing and shifting many company call centers and technical support teams, or “low skill service jobs,” to foreign countries reduces jobs for those that could truly benefit from them within our own country. The unemployment rate has dramatically increased, and continues to rise, compared to what it has been in years past; yet there are numerous companies which still insist on handing over these “low skill service jobs” to people in other countries such as India. The most obvious and logical reason for outsourcing is reducing costs; people are working for a smaller fraction of the pay compared to that of their American counterparts. Outsourcing is used by many companies both in and out of the United States; it has proven to be beneficial to the companies that choose to partake in it, while other companies do just fine without outsourcing.…

    • 1938 Words
    • 8 Pages
    Good Essays
  • Best Essays

    554 Infrastructure

    • 3120 Words
    • 13 Pages

    References: Aird, C. L. & Sappenfield, D. (2009, June). IT the 'enabler ' of global outsourcing. Financial Executive, 25(5), 62.…

    • 3120 Words
    • 13 Pages
    Best Essays
  • Satisfactory Essays

    When it comes to international outsourcing of employment, it can be a cost efficient alternative for many organizations. It allows companies to cut their expenses, increase their profits, lower prices, as well as it helps to improve company’s economic situation.…

    • 365 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Abstract This article presents an overview of the offshoring of information technology (IT), especially software and IT-enabled services, and its impacts on American labor. Topics include the history of offshoring politics in the United States, differences in attitudes between politicians and economists in their attitudes about the severity of the offshoring “problem,” national differences in types of offshoring providers, technological and other drivers of offshoring, reasons to offshore, characteristics of work amenable to offshoring, the employment impact in the United States, political and educational responses to offshoring in the United States, and the roles of labor unions and big business. Keywords offshoring, information technology, educational responses, political responses, labor This article addresses the offshoring of information technology (IT), especially software and IT-enabled…

    • 10332 Words
    • 42 Pages
    Better Essays
  • Better Essays

    Offshore Outsourcing

    • 921 Words
    • 4 Pages

    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…

    • 921 Words
    • 4 Pages
    Better Essays
  • Good Essays

    However, offshore outsourcing also brings in disadvantage.In the United States, the factories and workers are bounded by laws, rules and regulations. As a company outsource for foreign labour,intellectual property (IP) and privacy concerns is an important element to be considered on. In the case of an American company, IP is not something that can be closely protected when an employee resides in a country that doesn’t abide by American laws.While there are ways to minimise risk, the issues regarding IP could become complicated and can be avoided by not outsourcing or developing legal agreements to ward off these types of issues One of the most significant disadvantages is the increment in job losses, especially for the less skilled. It has…

    • 174 Words
    • 1 Page
    Good Essays
  • Powerful Essays

    Essay Offshoring

    • 1893 Words
    • 8 Pages

    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.…

    • 1893 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Is Outsourcing Good

    • 693 Words
    • 3 Pages

    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…

    • 693 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Outsourcing in America

    • 1347 Words
    • 4 Pages

    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.…

    • 1347 Words
    • 4 Pages
    Good Essays
  • Good Essays

    American Outsourcing

    • 1669 Words
    • 7 Pages

    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…

    • 1669 Words
    • 7 Pages
    Good Essays
  • Good Essays

    Why America

    • 496 Words
    • 2 Pages

    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…

    • 496 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Outsourcing

    • 2746 Words
    • 11 Pages

    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…

    • 2746 Words
    • 11 Pages
    Powerful Essays