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Outsourcing of Production - Research Paper Example

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According to this research paper, Outsourcing or offshoring of production and employment refers to the practice of shifting jobs to other areas, more specifically to lower wage countries. This phenomenon is on a rise especially with US companies that are aiming to cut their operating costs…
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Outsourcing of Production
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Download file to see previous pages These advantages include lower cost, higher profitability, focus on core competencies, more savings, higher ability to meet seasonal demands, help in sharing risks, developing your internal staff and many others.
Consider these latest statistics and reports. A study revealed in the first quarter of 2010 indicates that more than 80 percent of the US enterprises either are planning to increase their IT outsourcing or would like to keep it at least the same in future (Organisation for Economic Co-operation and Development, 2010). Year 2008 was a period of flat growth for most of the Indian IT companies but the same is not true for the next year. Only the three biggest IT companies in India have reported inducting more than 16500 new IT experts into their workforce. Moreover, in 2009, a research indicated that by the end of 2010, companies with revenues of at least 5 billion US dollars per year would move more than one-quarter of their IT jobs offshore (Oshri, Kotlarsky & Willcocks, 2009). In addition, it is important to note that despite many companies have indicated that they are not fully satisfied with the quality of work that they get by outsourcing but still less than 10 percent of them have expressed the desire to give those jobs back to their internal employees. Even the most conservative estimates indicate that more than 3.3 million would be outsourced from the US by the end of 2015 (Plunkett, 2008). Even serious is the fact that more than 14 million jobs in the US are at the risk of being outsourced (Organisation for Economic Co-operation and Development, 2010).
Furthermore, this topic has been able to attract many critics and debaters due to its political, economic, social, and other effects on the US as a whole. ...Download file to see next pages Read More
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