The essay "Global Outsourcing" focuses on pros and cons of outsourcing for the global and local economy. While the objectors of outsourcing in the United States claim that it will result in layoffs and dislocation for many US workers, most economists believe that it will ultimately strengthen the US economy…
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Despite the recent economic downturn, according to a McKinsey Analysis, the U. S. economy created an average of 3.5 million new jobs in the private sector per year (Otterman). Nine million people come on to the job market every year (Gardels, 2004). Outsourcing helps to stimulate the economy. The loss of jobs can be attributed to other factors like the bursting of the tech bubble and its effects on Wall Street, the consolidation of retailing under giants like Wal-Mart, and the after math of September 11 and other events.
The Bush administration is convinced that shifting the white collar jobs to the developing countries might cause short term pain but is a part of the positive transformation that will enrich the US economy over time. The Information Technology Association of America (ITAA) also agrees that while outsourcing white collar jobs may have thrown some Americans out of jobs, it will ultimately lower the inflation, create jobs, and boost productivity. Just when layoffs and ‘pay-for-performance’ was taking place, educated and eager workforce emerged in countries like India, China, Malaysia and Vietnam.
Outsourcing assists with a form’s globalization strategy, helps broaden infrastructure capabilities, and offers local market access advantages it can help alleviate the technical labor shortages in the West.Other benefits include access to skilled personnel across the world, exploitation of follow-the-sun model to improve delivery schedules, and make up for the gaps in the internal capabilities of the firms
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(Global Outsourcing Essay Example | Topics and Well Written Essays - 1000 Words)
Global Outsourcing Essay Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/management/1540292-outsourcing.
“Global Outsourcing Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/management/1540292-outsourcing.
This in itself would contribute to the surge in exports to the developed economies. There are several problems with outsourcing faced by the state and companies. Recent years, a large number of engineers have been sent abroad by SMEs and TNCs. Thus, critics admit that the USA needs these research projects to be kept ay home.
The author states that some of the challenges that have greatly interfered with employees’ careers due to flexibility at work include increased incidences of touring that may, on the other hand, lead to involvement in road accidents or indulgence in non-constructive activities. This may end a good career.
These depend on the benefits the company feels accrue in terms of lowered labor cost, Grow global market share, favorable tax conditions, more lenient environmental regulations, proximity to raw materials, lowered import capital cost, and time the need to avoid national currency fluctuations among other reasons.
There have been many reasons for the companies to outsource there is business and some of them are trying to cut costs of IS services, the demand for good quality systems and the inability of the company to establish complex computer systems. The major hurdle in
Typical examples of outsourcing jobs include medical transcription, information technology, human resources, law, education, and accounting. It is also not uncommon for companies to outsource customer support and call center functions, manufacturing and engineering.