In recent years, China's service outsourcing have been expanding from scratch, and gradually expand the field, scope of business mainly related to Information Technology industry, producing services, as well as cultural and creative industries, the target involving Japan, Korea, Europe, America and India. In Shanghai, Beijing and other cities formed a group of outsourcing industry cluster, with significant economic benefits of international service outsourcing park; local outsourcing companies grew rapidly, and gradually change the pattern of the first to foreign-based.
According to the Ministry of Industry, data shows that in 2008 China's software and information services outsourcing industry scale reached 156.77 billion yuan, up 41.2%; software and the number of firms of information service outsourcing in China is 3600, an increase of about 20.0%; the number of employees in the Software and IT outsourcing industry reached 41 million, increased about 36.7%. 2009, China's software and information services outsourcing industry has maintained rapid development, and industry continued to expand, reached 146.36 billion yuan revenue at the first three quarters, an increase of about 24.5%, is expected to be close to 200 billion annual revenue. Vector current industry also shape the northeast, the Bohai Rim, Yangtze River Delta, Pearl River Delta, the Midwest, "the five clusters," "East map," a good development pattern. China's outsourcing industry has been driven from the global to the local industry, industry self type; from offshore outsourcing led to the local market-driven transition from multinational companies and "returnees" to promote entrepreneurship, to private capital, local entrepreneurs to promote the transformation of Chi...
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...vices outsourcing industry the most important part of domestic demand. IT systems for the financial industry, construction and maintenance, software development, customer services (such as call centers, etc.), data processing, ITO and BPO services with a wide range of needs, with the further development of specialization in the future will surely have a more realistic outsourcing needs. Telecommunications industry, with a new round of telecom industry restructuring and the issuance of 3G licenses, for a new round of telecom infrastructure, and derivatives of customer service, system construction, software development and other needs will have significant growth. Only the current needs of manufacturing outsourcing to 10.1% in the proportion of total demand, but with very large potential for development. This is a strong manufacturing base in China itself compatible.
Outsourcing simply means acquiring services from an external organization instead of using internal resources (Butler, 2000). By using outsourced resources, organizations can gain a competitive advantage by utilizing contingent staff to accomplish strategic goals without incurring the fixed overhead. By focusing on the leading edge and highly specialized skill sets, outsourcing providers can often offer higher quality services, or at a lower price than the client organization. Typical reasons for outsourcing go beyond simple contingent staffing. Outsourcing providers are able to maintain economies of scale with regard to specialization (...
Recently outsourcing has been in the news, especially during political election years. It seems to be a phenomenon that is causing much concern among the population. But exactly how is outsourcing effecting both workers and businesses? And is it as big of a problem as politicians describe?
Outsourcing is a complicated and a multifaceted subject that involves a “business[’s] purchase of parts or labor from another company rather than maintaining a sufficient enough number of its own employees to do the same work in the country where the company is already based” ("Outsourcing"). The first practice of outsourcing was in medieval times when “nation-states called in soldiers-for-hire to help their own military forces during ongoing conflicts” ("Outsourcing"). Many think of outsourcing as a one way trade of production facilities moving outside of a companies locale but in actuality it is a two way trade that also involves companies from other areas moving their factories to local areas where conditions are beneficial for the specific business. Outsourcing has evolved but the main idea has remained the same. The recent increase in outsourcing “was initiated by Wall Street pressures on corporations . . . . for increased profits . . . in the production of goods and services marketed in the U.S."(Roberts).
In many cases outsourcing has proven to be beneficial for businesses. It can help a business’s management by allowing executives to focus on the core structure of the firm rather than every specific element. Production, manufacturing, or additional servic...
Since the concept of outsourcing was introduced it has been a subject of debate between politicians and citizens of the United States. Remarkably, it was the United States who supported outsourcing and now it is the United States that feels its economic progress is being threatened by outsourcing. One may argue that the financial situations that existed two decades earlier are not the same as they are today, thus the change of time, business priorities of economies have also changed.
The exporting of American jobs is an issue that is important and will become increasingly so as more and more white collar jobs are shipped overseas. American companies in the past few decades have been sending American jobs overseas paying residents of other countries pennies on the dollar what they had paid American workers to do. This saves the companies millions of dollars on labor costs but costs Americans precious jobs.
The U.S. industries have been outsourcing manufacturing for several decades now. U.S. companies thought they were reducing costs by outsourcing development, manufacturing, and process-engineering abilities. Consequently, U.S. corporations’ knowledge, skilled workers, and supply chain, which are the necessities to producing advanced products, have vanished. For example, almost all notebook computers, cell phones, and handheld devices, which were once created in the U.S., are now designed in Asia. When a major U.S. company outsource, it pressures their rivals to do the same thing. They also lose the expertise of process engineering, which would interact with manufacturing on a daily basis. Minor companies and skilled workers go to where the jobs and knowledge networks are no matter where they are geographically in the world. This decline of trade in the U.S. has caused a negative chain reaction to their suppliers of sophisticated materials, tools, production equipment, and components. U.S. industries do not have a way of coming up with new ideas for the next generation of high-tech products...
As esteemed journalist Tom Piatak wisely puts it, “The trickle of outsourcing threatens to become a flood.” His words speak the truth as outsourcing has left United States’ workers jobless, and it continues to increase the unemployment rate every year. During February of 2009, American workers lost a record 651,000 jobs alone, increasing the unemployment rate to 8.1 percent, the highest it has been in 25 years (Katel). Multinational corporations, hoping to cut down costs and stay profitable in the market, outsource by exporting American jobs to third-world countries such as China and India. It may seem noble that outsourcing provides third-world countries with job opportunities, but the United States’ markets and industries are greatly affected. Outsourcing is harmful to the United States’ economy because it paves the way for job losses, decreases product consumption, and widens the gap between the rich and the poor.
The term outsourcing refers to the act of contracting out business activities and procedures to a third party. The act of outsourcing sometimes involves the transfer of assets from one organization to the other. The term is also used to describe the act of handling the control of public services to the private corporations. Outsourcing mainly involves both the local and foreign contracting. At times, the term is used to describe relocation of business organizations to another country which is a also known as off shoring. This term is very popular in the U.S especially in the 21st century (Davies, pg. 21). The main motivation for the activity of outsourcing is the financial saving due to the reduced international labor market rates. The opposite of outsourcing is in-sourcing which is the act of bringing the business process that are handled by the third party back to in-house or the local areas instated of contracting it to another country.
Outsourcing has been around for many years. In this paper, I will discuss some of the history of outsourcing, the good things about outsourcing, and the bad things about outsourcing. Outsourcing is important because many companies rely on it in order to get many different products and services to their facility on time and in good shape. Outsourcing is a huge part of the business industry today. Any business can be affected by outsourcing.
China also provided a labor force that is able to tackle both white-collar and blue-collar job positions. This made foreign companies rush both monetary and technological resources into China to utilize the manufacturing and development power. Both Microsoft and Sun have created research and development centers to implement and design software applications in China. Domestic companies are not far behind either, for example, China's own Evermore Software is on the rise to challenge Microsoft's office suite with its own.4
[4] Gupta, Sachin. For a global software company, outsourcing began at inception . World Paper. April 19. 2004 http://www.worldpaper.com/2004/april/april4.html
Outsourcing relates to a firm contracting with another firm to provide products or services which could otherwise be made in-house. The contracted third party company takes control of the work and it is accountable for the success of the work assigned. Many organizations today outsource services such as electronic mail services, payroll, and customer care call center services. A firm contracts with a company that has specialized in production or provision of a given service, where in many cases the company is located overseas. Having looked at what is all about outsourcing it is important to note that; a business outsources a job that it considers not to be the core business of the company. An insurance company for instance outsources its landscaping operations to companies that are experts and specialists in that job. The service providers where jobs are outsourced are referred to as third parties (Sourcingmag.com 2011).
Outsourcing is a technique for companies to reassign specific responsibilities to external entities. There are several motivations for outsourcing including organizational, improvement, cost, and revenue advantages (Ghodeswar & Vaidyanathan, 2008).
...urcing services, the company operation will be became a mess. This is because one organization can’t run a lot of task or project at one time. Therefore an organization need outsourcing in the way to help their organization run smoothly.