Free Essay

Global Outsourcing

In: Business and Management

Submitted By golou
Words 1294
Pages 6
Thesis: American labor markets are in decline because of global outsourcing which has created jobs overseas, with fewer regulations for the environment and lower costs of operation.

Introduction: Outsourcing can happen to almost anyone. It happened to me. I woke up like any other morning. Went to McDonalds for a cup of coffee and then headed to work. Unlike every other morning though I came to work with my department shut down with no warning and an emergency meeting to tell us that we have been outsourced and are not longer needed. Many American jobs everyday are being outsourced to other countries thus hurting the economy of America and the countries that are getting the jobs. Outsourcing is the practice by which a company hires another company to do some aspect of its work. In this presentation I am going to talk to you about three main points: What are the benefits to companies pursuing an outsourcing agenda, the drawbacks to companies pursuing an outsourcing agenda and the drawbacks to the U.S. economy of the pattern of outsourcing.

I. What are the benefits to companies of pursuing an outsourcing agenda? a. According to Farrell (2002) At the top of the list, is the financial impetus. To date “cost savings are still a key outsourcing benefit,” with the reduced cost of transferring labor to external settings or even overseas, coming from the access to new markets. (Farrell, 1) b. In the IT world especially, this benefit is paired with the opportunity to utilize outside agencies for training, research and leadership in orientation to new technology, which may not be skills availed to in-house workers. (Farrell, 1)

II. What are the drawbacks to companies pursuing an outsourcing agenda? a. Kandikar (2005) argues that with the externalization of important business commissions, such aspects of the business are now being overseen by individuals not necessarily operating in concurrence with company culture, mission and vision. b. Patterson (2005) sees that growth of the companies that service us to scope that the customer’s closest contact with a service organization is an individual in a remote country who has been externally contracted to handle such calls has the notable effect of diminishing the quality of this contract altogether.

III. What are the drawbacks to the U.S. economy of the pattern of outsourcing? c. According to Friedman (2005), once “new forms of collaboration have been made available to more and more people, the winners will be those who learn the habits, processes, and skills most quickly and there is simply nothing that guarantees it will be Americans or Western Europeans permanently leading the way.” (Friedman, 183)

Conclusion: The research and findings intended by this proposal would illustrate that outsourcing has pointedly negative consequences for production and service professionals in the outsourcing country or culture and for the economy of this country as whole.

Scripted Audience Questions

Question: How does a outsource company “handle” the language barrier between the offshore group and the group that is being serviced?
Answer: In a number of companies, that outsource their labor, they promote employees to learn foreign languages, and will also teach their employees the different linguistics dialects of the group that is being serviced. (ADPT Services 2009)
Question: How is the U. S. work force staying competitive?
Answer: The U. S. work force is staying competitive by stressing to the public that education is necessary to be able to obtain “a good paying job”. The better paying jobs are requiring master degrees and furthering education of their candidates. (U. S. News 2010)
Question: What are the benefits for the company to outsource/off shoring labor? Answer: By using off shoring labor, a company may take advantage of having employees to work twice as hard but with a lower wage. Employers may also take advantage that there is a ample supply of skilled professional labor willing to work for less with a faster rate of production and greater efficiency. (Business Weekly 2006)

References

ADPT Services. 2009. Pros and Cons of Outsourcing. Pro Log http://www.prlog.org/10181084-outsourcing-pros-and-cons.html Artimovich, I. (2008). Weak Dollar Hits Outsourcing to India, China and Others. http://www.moveyourweb.net/blog/weak-dollar-hits-outsourcing-to-india-china-and-others-2/

Engardio, Pete; Arndt, Michale; and Foust, Dean. 2006. The Future of Outsourcing, How it's transforming whole industries and changing the way we work. Business Weekly. http://www.businessweek.com/print/magazine/content/06_05/b3969401.htm?chan=gl

Farrell, K. (2003). Outsourcing’s Benefits May be More than Monetary. Information Week.

Friedman, T. (2005). The World is Flat: A Brief History of the 21st Century. Farrar, Straus and Giroux.

Kandikar, M. (2005). Outsourcing. The University of British Columbia. KMA1. (2010). In-house Versus Outsourcing. http://www.kma1.com/inhouseoutsource.htm

Paterson, M. 2005. Thinking Politically About Consumption. Global Policy Forum.

Sawyer, P. (1999). Outsourcing Benefits IT Budgets. American City & Country.
2010. Study Says Masters Degrees Make American Workforce Competitive. U. S. News http://www.usnewsuniversitydirectory.com/articles/study-says-masters-degrees-make-american-workforce_10103.aspx Visual Aid Presenter’s Script

The process of globalization is changing the way that companies and countries conduct business. From institutional factors such as the laws and tax policies of partnering nations to internal personnel decisions, the adoption of free trade policies is altering operational strategy. Perhaps the most salient indicator of the implementation of free trade and its gradual permeation of the developing world is the appeal to outsourcing which has become an integral part of American business administration. Outsourcing is the practice by which companies will employ agencies external to the company, and increasingly external even to the primary country of operation, in order to attain specialty services at a fee-per-service basis.
What is the impact on the American economy of the trend of global outsourcing?
Global outsourcing has resulted in many American jobs being shipped overseas to markets where labor and environmental leniency lower costs of operation, resulting in both a retraction of the American labor markets and a decline in American productivity.
What are the benefits to companies of pursuing an outsourcing agenda? According to the Farrell (2002) At the top of the list, is the financial impetus. To date “cost savings are still a key outsourcing benefit,” with the reduced cost of transferring labor to external settings, or even overseas, coming from the access to new markets. (Farrell, 1) In the IT world especially, this benefit is paired with the opportunity to utilize outside agencies for training, research and leadership in orientation to new technology, which may not be skills availed to in-house workers. (Farrell, 1)
What are the drawbacks to companies pursuing an outsourcing agenda? Kandikar (2005) argues that with the externalization of important business commissions, such aspects of the business are now being overseen by individuals not necessarily operating in concurrence with company culture, mission and vision.
Paterson (2005) sees that the growth of the companies that service us to the scope that the customer’s closest contact with a service organization is an individual in a remote country who has been externally contracted to handle such calls has had the notable effect of diminishing the quality of this contact altogether.
According to Friedman (2005), once “new forms of collaboration [have been] made available to more and more people, the winners will be those who learn the habits, processes, and skills most quickly—and there is simply nothing that guarantees it will be Americans or Western Europeans permanently leading the way.” (Friedman, 183)
The research and findings intended by this proposal would illustrate that outsourcing has pointedly negative consequences for production and service professionals in the outsourcing country or culture and for the economy of this country as a whole.

Visual Aid

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