Pros and Cons of Outsourcing Essay -- Research Papers, Globalization

Pros and Cons of Outsourcing. 1. Introduction Globalization has lead to increase in world-wide trade and a greater role for multinational corporations. With the rise of globalization many companies are turning to either off shoring or offshore outsourcing. In India and China, companies like IBM, Microsoft, Hewlett Packard, and Novell choose to get services from sub-contractors in these countries or move their development and support jobs there. Outsourcing is to contract out near of companys activities to a tertiary party company. The company who outsourced and the third party who is going to handle the activities for the company are joined by means of an outsourcing arrangement. This practice became even more popular after the dot com crash of the early 21st century. As many businesses struggled with cash-flow problems, many investors were leary in investing money in high-tech companies, which many felt were stable vulnerable to the dot-com effect. Struggling to do more with le ss, companies looked for less dear(predicate) avenues of development and support. For the United States, Indiaseemed like a perfect resource for these ineluctably since most nationals speak english. A company can hire an unionise in India, for example, for US$10,000 a year where an equ everyy qualified place in the U.S. could cost $60,000-$90,000 a year. Outsourcing has been big political issue as highly educated and highly paid IT workers lose their jobs. In this agonistic environment, companies have to concentrate on competency and they want to outsource everything to stretch cost so the trend toward offshore outsourcing is increasing. Outsourcing threatens that in future US will not have many technology people. As all the technical work will be ... ...ures/feature.php?wfId=1872298http//lieberman.senate.gov/newsroom/whitepapers/Offshoring.pdfhttp//www.iie.com/publications/papers/kirkegaard0204.pdfhttp//msnbc.msn.com/id/4631368/http//www.computerworld.com/managementtopics/ou tsourcing/story/0,10801,78941,00.htmlhttp//www.agilemanagement.net/Articles/Weblog/OutsourcingDebate.htmlhttp//www.infoworld.com/ hold/03/12/19/HNoutsourcing2004_1.htmlhttp//www.washingtonpost.com/wp-dyn/articles/A36379-2004Mar30.htmlhttp//www.iht.com/articles/127188.htmlhttp//www.aicpa.org/pubs/jofa/mar2004/miller.htmhttp//www.wordiq.com/definition/Outsourcinghttp//www.nysscpa.org/cpajournal/2004/304/perspectives/nv1.htmhttp//www.nasscom.org/artdisplay.asp?Art_id=1907http//www.nasscom.org/artdisplay.asp?Art_id=2552http//www.capgemini.com/adaptive/media/TransOutsourcePOV.pdf