Globalization with an Eye to Outsourcing - Research Proposal Example

Outsourcing is an integral component of the globalization phenomenon and a key aspect of the global division of labor. Thomas Friedman, in his immensely popular book The World, is Flat (2005), describes outsourcing as an integral component of the worldwide spread of capitalism and the global division of productive labor. According to Friedman, outsourcing is primarily done in response to keep costs low and restructuring ones’ labor force in order to keep production costs at a minimum. Accordingly, while a non-skilled manufacturer in Illinois can expect to earn a minimum of $14 an hour, a country such as India could earn less than $1 an hour.

Thus, companies who seek to maintain their competitive advantage and keep costs low, ship their production facilities overseas where costs are significantly lower. There are also important tax advantages to outsourcing jobs overseas and as we shall see in our case analysis of China below, companies can often expect certain tax benefits when utilizing productive labor in the developing world (Friedman 2005; Bendor-Samuel 2005). As a proposal that aims to address the important ramifications of IT Outsourcing on the global economy, this project aims to provide the following in a holistic manner. 1) An Introduction to Outsourcing and the Ramifications of this on the Global Economy; 2) The Advantages of Outsourcing Key Business Processes; 3) The Disadvantages of Outsourcing Key Business Processes; 4) An analysis of What Can Be Outsourced?

(Who Should Outsource?) and finally, 5) the Critical Steps to Prepare and Implement an Outsourcing Plan. Prescriptive in nature, it will also give an insight into the future of outsourcing as a potential tool for companies. We will also utilize a case analysis and explore two countries that have embraced free trade and economic growth as a haven for outsourcing. China represents a unique blend of authoritarianism and capitalism leading to sustained and pronounced economic growth in one of the largest – and growing - economies in the world.

Mexico represents a controversial source for many American jobs. In addition to a cross-comparative analysis of these outsourcing “source” countries, we will address criticisms of the globalization phenomenon including the rise of protectionism as a response to the flight of jobs overseas. This project will be the result of extensive research and the bulk of the data explored will be obtained through scholarly analysis and a comprehensive literature review of all current scholarly information on the subject.

Although primarily qualitative in nature, if quantitative data is available, this information has been integrated into the overall analysis. To this end, scholarly journals websites, and the latest books on the subject will be utilized. This research intends to undertake data collection through extensive research and coding of relevant information. Due to geographic limitations, first-hand qualitative research will not always be feasible and this project will rely on scholarly library research.

In addition to scholarly research on the subject, this author has sought out primary documents from a variety of actors, both at home and abroad.