Offshore Outsourcing of Information Technologies Services
OFFSHORE OUTSOURCING OF INFORMATION TECHNOLOGIES SERVICES: WHY ARE WE DOING IT?
MBA500 TABLE OF CONTENTS
INTRODUCTION 3
THE HISTORY OF OUTSOURCING 4
HOW IS IT POSSIBLE? 6
WHY DO WE OUTSOURCE 10
WHO ARE WE OUTSOURCING 12
THE FUTURE OF OFFSHORE OUTSOURCING 13
CONCLUSION 16
BIBLIOGRAPHY 17 Introduction
Offshore outsourcing is not a new practice in the United States. Offshore outsourcing of information technologies services, however, is relatively new to our nation. It is a hot issue in political debates, with this being an election year. Job loss and job creation in the United States is on the platforms of leading candidates. Economists are projecting that the offshore outsourcing of certain types of jobs will in fact create jobs here at home, ultimately benefiting the labor force and our economy. While there is not significant statistical data yet to support this theory, if one looks to the history of outsourcing as a whole, it does not seem an impossibility. But why are we outsourcing these jobs? What are the factors that have brought us to this place in the labor market? What caused employers to look to other countries for employees? The purpose of this short study is to consider these questions and provide some thoughts as to where we are now, how we got here, and where we are headed with offshore outsourcing of information technology jobs. The History of Outsourcing
Outsourcing is the process of subcontracting services and operations to other firms that can provide them more cheaply or better . Companies outsource tasks, projects, and sometimes even entire operations. Offshore outsourcing, then, would be outsourcing to firms in other countries. This practice is not new, just as the loss of jobs here in the Untied States to other countries is not new. The automobile industry and the steel production industry were hit by outsourcing long ago , as factories were built in other countries and manufacturers hired workers at lower
MBA500 TABLE OF CONTENTS
INTRODUCTION 3
THE HISTORY OF OUTSOURCING 4
HOW IS IT POSSIBLE? 6
WHY DO WE OUTSOURCE 10
WHO ARE WE OUTSOURCING 12
THE FUTURE OF OFFSHORE OUTSOURCING 13
CONCLUSION 16
BIBLIOGRAPHY 17 Introduction
Offshore outsourcing is not a new practice in the United States. Offshore outsourcing of information technologies services, however, is relatively new to our nation. It is a hot issue in political debates, with this being an election year. Job loss and job creation in the United States is on the platforms of leading candidates. Economists are projecting that the offshore outsourcing of certain types of jobs will in fact create jobs here at home, ultimately benefiting the labor force and our economy. While there is not significant statistical data yet to support this theory, if one looks to the history of outsourcing as a whole, it does not seem an impossibility. But why are we outsourcing these jobs? What are the factors that have brought us to this place in the labor market? What caused employers to look to other countries for employees? The purpose of this short study is to consider these questions and provide some thoughts as to where we are now, how we got here, and where we are headed with offshore outsourcing of information technology jobs. The History of Outsourcing
Outsourcing is the process of subcontracting services and operations to other firms that can provide them more cheaply or better . Companies outsource tasks, projects, and sometimes even entire operations. Offshore outsourcing, then, would be outsourcing to firms in other countries. This practice is not new, just as the loss of jobs here in the Untied States to other countries is not new. The automobile industry and the steel production industry were hit by outsourcing long ago , as factories were built in other countries and manufacturers hired workers at lower
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