Outsourcing IT Jobs: Pros And Cons
analytical Essay
954 words
Outsourcing IT Jobs: Pros and Cons
In 1973, a monumental shift was prevailing where U.S. companies were sending low skilled jobs within the manufacturing industry to offshore countries to reduce labor cost while maximizing profits. The effect of the jobless manufacturing work force was a shift of those laborers to focus on and perfect the service industry of what it is today (Koch 1). During the high tech recessions of the late 1990s and a nominal expansion of the present time, the Information Technology industry, an industry which through continuous innovations enabled the companies and corporations of America to become more efficient and productive, is also facing the outsourcing similarity with manufacturing. While outsourcing manufacturing jobs offshore requires movement of raw materials and building new factories, Information Technology jobs could be outsourced much quicker than manufacturing jobs, as the majority of its roles and responsibilities are mobile. Overseas outsourcing of IT jobs has quickly become a controversial national issue. Outsourcing involves far more complicated advantages and disadvantages than the debaters on either side are willing to admit (Weidenbaum).
Outsourcing can help a company operate in an increasingly competitive global marketplace. Outsourcing can enable a business to provide 24/7 coverage, especially for consumers who need around-the-clock support (Weidenbaum). In the next several paragraphs, I will discuss from a microeconomic level the actions that my employer implemented to take advantage of globalizing the work force to reduce costs, the issues my organization is facing with offshore efforts on the other hand, and then the cost associated with this trend towards macroeconomic wi...
... middle of paper ...
...el to the U.S. macroeconomic perspective. Therefore, in the best interest of the American economy, political influences should intervene by either providing corporate tax breaks to offset the labor cost or slow the off shoring efforts by making U.S. companies aware of all the complications that go along with outsourcing Information Technology jobs overseas.
Works Cited
Goodwin, Bill. “Outsourcing users taken by surprised”. Computer Weekly. (2006): 4.
Koch, Christopher. “Back Lash.” CIO Magazine. (2003): 1 – 3.
http://www.cio.com/archive/090103/backlash.html
Koch, Chris. “What CIOs Can Do.” CIO Magazine. (2003): 1.
Terry, Rory L. “Answers on Outsourcing.” CNN Money Magazine. (2004): 1 – 3.
Weidenbaum, Murray. “Outsourcing: Pros and Cons”. Executives Speeches (2004): 31 - 35
http://www.cio.com/archive/090103/backlash_sidebar_2.html
In this essay, the author
- Explains that outsourcing of it jobs has become a controversial national issue due to its complicated advantages and disadvantages.
- Explains that outsourcing can help a company operate in an increasingly competitive global marketplace. they will discuss their employer's actions to take advantage of globalizing the work force to reduce costs, and the costs associated with this trend towards macroeconomic within the u.s.
- Explains that the worst high tech recession of late 1990s resulted in net losses or barely positive net income. cio's began to send information technology jobs offshore to lower wage-paying countries.
- Explains that outsourcing of it jobs has become a controversial national issue due to its complicated advantages and disadvantages.
- Explains that outsourcing can help a company operate in an increasingly competitive global marketplace. they will discuss their employer's actions to take advantage of globalizing the work force to reduce costs, and the costs associated with this trend towards macroeconomic within the u.s.
- Explains that the worst high tech recession of late 1990s resulted in net losses or barely positive net income. cio's began to send information technology jobs offshore to lower wage-paying countries.
- Explains that moving jobs offshore is a result of external factors, such as the separation of costs and benefits, but many companies saw an opportunity to globalize their work force.
- Explains that u.s. companies search for offshore resources to reduce operational costs, but there are also costs associated at the macroeconomic level within the us.
- Argues that companies should look beyond the short term gains and see that there are lots of costs from a company level to the u.s. macroeconomic perspective.
- Cites goodwin, bill, koch, chris, and weidenbaum, murray.
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- Explains the management problem that is causing outsourcing is that companies are looking for ways to cut cost tremendously in labor and manufacturing.
- Argues that outsourcing to lower cost operations reduces overhead, compresses time-to-completion, and concentrates on core, strategic investments and hiring.
- Explains that outsourcing is affecting the u.s. economy greatly, causing a rise in unemployment rates and making it harder to find new jobs. outsourcing is the transfer of management and day-by-day execution of an entire business function to an external service provider.
- Explains the management problem that is causing outsourcing is that companies are looking for ways to cut cost tremendously in labor and manufacturing.
- Argues that outsourcing to lower cost operations reduces overhead, compresses time-to-completion, and concentrates on core, strategic investments and hiring.
- Explains that india is a perfect resource for the united states since most nationals speak english fluently and need little training on speech. israel, canada, india and japan are the four largest outsourcing countries.
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1980 wordsRead More - Outsourcing: Let's Get It Rightanalytical essayThis paper provides rhetorical analyses of two presentations pertaining to outsourcing. Neither particularly opposes outsourcing, yet each provides information addressing two different outsourcing concerns. Kibbe’s 2004 article “Outsourcing: the good, the bad and the inevitable” focuses on United States (U.S.) job impact. Van Heerden’s 2010 speech “Making Global Labor Fair” focuses on human rights impact.
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- Analyzes how van heerden concludes that a private contract stipulating adherence to ethical standards, partnered with the fair labor association’s assistance, provides the multinational company with ethical compliance to the consumer.
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- Explains that the global supply chain begins in rogue states, failed states and countries that attract investment by deregulation or no regulation.
- Analyzes how van heerden concludes that a private contract stipulating adherence to ethical standards, partnered with the fair labor association’s assistance, provides the multinational company with ethical compliance to the consumer.
- Opines that companies are accountable for ensuring their products and services can be received by the consumer in good conscience, void of ethical violations.
- Explains kibbe, c. (2004). outsourcing: the good, the bad, and the inevitable.
- Explains that auret van heerden: making global labor fair.
- Argues that companies should be accountable for ensuring their product or services can be received by the consumer in good conscience, void of human ethics violations.
- Analyzes how kibbe (2004) uses rhetorical devise loaded language, either-or-fallacy, and comparisons to influence readers to accept outsourcing as an acceptable way of business in today's multinational world.
- Analyzes van heerden's use of rhetorical devise dysphemism, sound anaphora, and epistrophe, partnered with parallels, to persuade the audience that multinational companies and non-government organizations should participate in voluntary initiatives that protect workers.
- Analyzes how van heerden uses the rhetorical devise dysphemism, while providing examples of widespread child exploitation, to instill focus on his main points.
1212 wordsRead More - The Pros And Cons Of Outsourcinganalytical essayThe significant level of outsourcing programs used across all business sectors is well documented in the literature (Bender 1999; Quinn 2000; Dun and Bradstreet 2000; Klaas, McClendon and Gainey 2001). Past research has progressed along several paths. First, some researchers have focused on motivations and reasons for outsourcing activities (Conner and Prahalad 1996; Greer et al. 1999; Sinderman 1995; Mullin 1996; Grant 1996; Frayer Scannell and Thomas 2000). According to this perspective, the global imperative for outsourcing accelerates as firms evolve from sellers of products and services abroad to setting up operations in foreign countries and staffing those operations with host countries or third party nationals (Greer et al. 1999). Most corporations believe that in order to compete globally, they have to look at efficiency and cost containment rather than relying strictly on revenue increases (Conner and Prahalad 1996). As companies seek to enhance their competitive positions in an increasingly global marketplace, they are discovering that they can cut costs and maintain quality by relying more on outside service providers for activities viewed as supplementary to their core businesses (Mullin 1996; Grant 1996).
In this essay, the author
- Explains that outsourcing programs are used across all business sectors, and that the global imperative for outsourcing accelerates as firms evolve from sellers of products and services abroad to setting up operations in foreign countries and staffing those operations with host countries.
- Explains the trend for outsourcing relationships to function more as partnerships, stating that 42 percent of communication firms, 40% of computer manufactures, and 37% of semiconductor companies rely on global outsourcing.
- Argues that outsourcing could negatively impact a company's long-term competitive advantages without engaging in the development activities of constantly evolving design and engineering technologies.
- Explains that outsourcing programs are used across all business sectors, and that the global imperative for outsourcing accelerates as firms evolve from sellers of products and services abroad to setting up operations in foreign countries and staffing those operations with host countries.
- Explains the trend for outsourcing relationships to function more as partnerships, stating that 42 percent of communication firms, 40% of computer manufactures, and 37% of semiconductor companies rely on global outsourcing.
- Argues that outsourcing could negatively impact a company's long-term competitive advantages without engaging in the development activities of constantly evolving design and engineering technologies.
- Argues that companies must proactively manage their outsourcing strategies by establishing top management commitment and global sourcing structures and processes. klaas et al. suggest that organizational characteristics have different effects on various types of outsourcing activities.
- Explains kotabe et al. identifies three types of performance measures as necessary components in any outsourcing performance measurement system. other studies use additional dimensions of market performance to measure the effectiveness of outsourcing strategy.
- Explains that obstacles such as poor choices of sourcing partners, inadequate planning and training/skills needed to manage outsourcing activities and poor organizational communication have also been identified as impacting the success of outsourcing projects.
- Explains that literature identifies high-level approaches to outsourcing, but not detailed methodologies. fewer studies have examined the outcomes of outsourcing activities.
- Opines that the increasing use of outsourcing arrangements, as well as the unfamiliar complexity, suggest the need to know more about how to effectively utilize this strategy.
- Describes the factors associated with the success or failure of outsourcing programs. organizations undertake outsourcing projects to improve organizational performance, productivity, marketshare, and quality.
1058 wordsRead More - The Pros And Cons Of Offshoringopinion essayOffshoring, the practice of basing some of a company 's processes or services overseas has its advantages as well as its disadvantages, as most business decisions do. It is the weighing of those two leverages that make the debate of offshoring such a conflict. For starters, offshoring allows companies to stream their productions globally. With this, companies can practice their supplier power and then begin to lower cost of goods to increase the demand, due to the lower rate in which they could produce overseas. This investment also acquires new customers and even puts the companies into new market opportunities. On the other hand, however it creates the issue that may damage the company’s image.
In this essay, the author
- Argues that sending jobs out of the country can hurt a company's public image in times of high unemployment in the united states.
- Opines that offshoring can be beneficial in the eye of the employer and the whole of a company.
- Describes the consequences of government incentives for companies to “not” offshore.
- Argues that sending jobs out of the country can hurt a company's public image in times of high unemployment in the united states.
- Opines that offshoring can be beneficial in the eye of the employer and the whole of a company.
- Describes the consequences of government incentives for companies to “not” offshore.
- Opines that the government needs to lower corporate taxes and other incentives to persuade companies to not offshore.
- Asks if offshoring threatens the american middle class.
- Explains that the term "middle class" can be tricky and ambiguous depending on where you reside. the practice of offshoring is only adding to this issue.
- Opines that political stability in offshoring can be a deal breaker for companies.
- Explains that companies have to consider the quality of the material supplied as well as the information security. in the us, trade secrets are afforded statutory protection, but not in india.
- Explains that offshoring allows companies to stream their productions globally, acquire new customers and enter new market opportunities, but it can damage the company's image.
1683 wordsRead More - The Pros and Cons of Outsourcingopinion essayOutsourcing has been around for many years. In this paper I will discuss some of the history of outsourcing, the goods things about outsourcing, and the bad things about outsourcing.
In this essay, the author
- Explains that outsourcing is a huge part of the business industry today. any business can be affected by outsourcing.
- Describes outsourcing as shifting all of the costs-accounting costs, including personnel, plus the risk of failure and the responsibility for action-to the third party.
- Describes the reasons for companies to outsource services or products, including motivation, specialization, survival of the economically fittest, economies of scale, heavier market coverage and independence from any single manufacturer.
- Explains that outsourcing is a huge part of the business industry today. any business can be affected by outsourcing.
- Describes outsourcing as shifting all of the costs-accounting costs, including personnel, plus the risk of failure and the responsibility for action-to the third party.
- Describes the reasons for companies to outsource services or products, including motivation, specialization, survival of the economically fittest, economies of scale, heavier market coverage and independence from any single manufacturer.
- Explains that outside parties have high-powered incentives to do their jobs well because they are independent companies, accepting risk in return for the prospect of rewards.
- Explains whirlpool's pioneering role in outsourcing logistics, while kenco is a logistics provider. outsourcing allows each party to stick to their specialty.
- Explains that if specialists fail to do their functions better than their competitors do, they do not survive. distribution in most sectors has low mobility barriers. incompetent marketing channels cannot stay in business by subsidizing distribution losses with gains in other sectors.
- Explains that outside parties pool the demands of multiple manufacturers for marketing channel flows. this allows them to achieve economies of scale by doing one thing for multiple parties.
- Explains that heavy coverage of a market stems from the independent's ability to call on many customers, including small customers.
- Explains that diversified outside providers of channel flows can serve as an impartial source of advice that does not come from a single manufacturer.
- Opines that outsourcing of lower skilled jobs is an unstoppable trend for developed economies such as the united states.
- Analyzes how the investor's withdrawal scuttled the former employees' proposed deal to acquire am’s products business because he saw outsourcing had essentially stripped the concern of perhaps the most important asset of them all -- its knowledge.
- Opines that outsourcing is a problem because of the quality of information and products that we get back in the united states.
- Opines that outsourcing has many good aspects to make companies want to outsource, such as cheaper places to get goods and services made, which is in line with the american way of life.
- Opines that outsourcing has many pros and cons, but it's not going to go away anytime soon since it has been around since the greeks.
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