Outsourcing The Trend Of American Business' Outsourcing Jobs In Order To Save Money.

1410 words - 6 pages

Introduction.Outsourcing is a $6 trillion global industry. It is one of the most widespread topics in the field of business. Workplaces throughout this country and abroad are discussing this great phenomenon. From a global perspective, outsourcing allows companies to create a more flexible and adaptable organizational structure. Let's take a look at what it is, the pros, the cons, and what it means to the average worker.So what is it exactly? This great innovation has revolutionized the workplace. Outsourcing simply put is hiring outside groups to do the work that either an organization cannot do or chooses not to do. In many cases employers outsource work that can be completed more proficiently elsewhere; thereby allowing the company the opportunity to work in their core competencies. In other words, they concentrate on what they do best. This concept was developed in the early seventies by manufacturing executives and has grown to just about every other business industry possible.What jobs are outsourced?Typical manufacturing companies now outsource about 70 to 80 percent of their work. Executives now do about one-third of their clerical functions through outsourcing. That figure is projected to grow 70 to 80 percent within the next decade. For both managers and employees, this creates different skill sets. Perhaps specialized skills will be attractive to those that provide the outsourcing. At any rate, outsourcing has the potential to make companies much more productive and competitive.Information Technology was one of the first knowledge-based industries to experience outsourcing and it remains one of the most visible and lucrative forms of offshore outsourcing today.But it is by no means the only one, and there is a list of other forms of knowledge-based work that are being shipped overseas, to be carried out in the Philippines, India, China, or Russia. This is not a complete list. Even if that were possible, it would be obsolete by the time you finish reading this. Whatever form of knowledge-based work we might have regarded as "safe" yesterday is likely to be a candidate for outsourcing tomorrow.Regardless of the kind of work you do, you're not "safe" - unless there is an overwhelming reason why your work must be done in close proximity to your ultimate customer. McDonalds and Burger King could conceivably outsource a large percentage of their business activities, but the person who cooks your hamburger or drops those frozen French fries into a pot of boiling oil will probably never be more than a few feet away from where you stand at the cash register. As for everything else, watch out. Offshore outsourcing is not just about call centers and computer programmers - it's about everything. The list is getting longer and includes: data-entry, help-desk services, finance, accounting, tax filing, market research, legal work, travel agents, loan applications, and claim processing.Although outsourcing thrives only because of the undying need to...

Find Another Essay On Outsourcing - The trend of American business' outsourcing jobs in order to save money.

American Airlines plans of Outsourcing Jobs

1436 words - 6 pages choose to outsource those jobs. They think they can get it done cheaper. I don't think so." Even though, outsourcing these jobs to Hong Kong could cost the staff in the maintenance department to lose their job, it could really beneficiate American Airlines by saving more money on costs and expenses of their direct materials, direct labor, and manufacturing overhead. For example, according to the American Airlines financial report, the maintenance

Outsourcing of Jobs Essay

1115 words - 5 pages As Jim Pinto says in an article published on ISA, “…global outsourcing has a negative connotation—it means firing American workers and shipping jobs to less-developed countries where wages are low and labor laws are lax.” For these reasons, outsourcing has grown because companies believe they save money, time, and effort by moving jobs to other countries. However, outsourcing and offshoring jobs to foreign workers hinders the development and

What are the ethical issues concerning the outsourcing of jobs by the business community to our society in general?

1220 words - 5 pages What is the defination of outsourcing?Outsourcing is the delegation of tasks or jobs from internal production to an external entity (such as a subcontractor). Most recently, it has come to mean the elimination of in house staff to staff overseas, where salaries are markedly lower. It became a popular buzzword in business and management in the 1990's.Outsourcing is a legal business activity affecting America, and it is an inevitable response to

Outsourcing Jobs to Foreign Countries

1237 words - 5 pages The American middle class is in danger of becoming defunct by the outsourcing of jobs to foreign countries. Jobs that Americans once considered stable long-term employment are now being outsourced at a rising rate. If this trend continues, America could be the next third world country. How has this happened? What can the average American do about it?Outsourcing is not a new concept. As early as the 1900's the U S Government was outsourcing jobs

Outsourcing Jobs to Foreign Countries

1210 words - 5 pages corners of the world. Everything can now be accessed or tapped into through the internet. Technology now lets businesses do more with fewer people; technology has also provided more ways then just outsourcing to save money. If the job can be done for less and the business could find someone somewhere online to do it, does it matter if the person they hire is not in the same country?Outsourcing has cut salaries to the point that there is no reason to

Shifting jobs overseas, with outsourcing

515 words - 2 pages Americans have been discussing the issue of exporting of jobs since 1992 when American jobs moved to Mexico because of the North American Free Trade Agreement.Today, the U. S. corporations are continuing to exporting jobs in China, India, States of South America, North Africa, and East Europe.Many American cities have been landlord's markets for long time renting and selling office space to corporation for good price. This city strategy resulted

2. Assess the main threats of IS/IT outsourcing and put these possible threats in order based on its importance.

1011 words - 5 pages Commonly use outsourcing and managed services for their company. Outsourcing of information technology is not new for those who work in the technology and banking sectors. Although this area is new on the IT areas, it is one that may be more prevalent in the workplace, especially when it comes to data security. This is because many banks do not have the expertise to gather all the information effectively. 2.1 Quality control In some cases, these

Assess the main threats of IS/IT outsourcing and put these possible threats in order based on its importance. Justify your answer

742 words - 3 pages detect or assume a lack of skills in certain areas and will affect those who think they are not good enough in a company or an organization. A main threat, especially to customization and enhancements is limited. Sometimes, the outsourcing gives good service in an organization but it is limited to improve or changes the situation in the original contract. In business, customers might change the external market forces and regulations on their

Assess the main threats of IS/IT outsourcing and put these possible threats in order based on its importance. Justify your answer

1026 words - 5 pages outsourced company, where they will handle the paperwork of their services offered to you, in details. Although the paperwork is details, there still services that are not mentioned, but already being agreed by both parties. So the services that are not mention, but need to be conducted in order to meet its goals, will be counted as an extra charge that will need to be paid for. For all business, data or information is crucial. Without these, operating

Business Outsourcing

1784 words - 7 pages involved in outsourcing. Nothing could be farther from the truth, according to Satnam Gambhir, “In fact, it would be challenging to find a single Fortune 500 company that is not outsourcing any part of its daily business operations to offshore outsourcing firms.” In order to stay competitive in this new business practice, American businesses have to realize that American technology in IT and Telephony and fiber optics directly contributed to the

The Future of Outsourcing

1601 words - 6 pages to save any significant amount of money through outsourcing. The initial reduced overhead costs were clear, but in the long run it seems logical that it would save money to keep the extraneous tasks within the business. I also took personal issue with the idea of a business becoming so large that it can no longer manage its own work. As our society grows seemingly without limit I see people becoming more and more distant from the source of

Similar Essays

The Outsourcing Of American Jobs Essay

1021 words - 4 pages . Using their time while unemployed, Americans are retraining themselves and attempt to step into an entirely different career.      There are many key people that factor in on this issue of job outsourcing. First is the American worker. When most people think of jobs being sent overseas they think of factory workers or telephone operators, but the recent trend in the outsourcing of jobs has been higher paying jobs like accountants, computer

Outsourcing American Jobs Essay

1564 words - 6 pages , or receive low wages due to business relocating their productions to other countries. Moreover, if free trades continues in the way that it is going, it will bring down America's average wage. Furthermore, if big companies still keep getting tax breaks for buying machinery less and less workers will be needed, meaning, that people will be out of work. Additionally, if outsourcing keeps moving up the chain in taking skilled worker's jobs, (i.e. I.T. jobs, computer programming) there will be no jobs left for American workers. Lastly, if the government doesn't raise wages proportionally to productivity, consumers will not have any money to buy goods or services.

Outsourcing American Jobs Essay

1609 words - 6 pages in her article ?Cost cutting may spur IT deals? on computerworld.com ?The cooling economy may prompt firms to outsource more IT or cost cutting reasons.? In the same article they stated that in a pole given to 150 American and European companies 39% of the companies listed saving money as there primary reason for outsourcing. Saving money was the number one answer given. When companies save money theoretically so do the people who rely on that

Morality Of U.S. Corporations Outsourcing American Jobs To Foreign Countries

2114 words - 8 pages and middle class America. Outsourcing is the contracting or subcontracting of non-core activities to free up cash, personnel, time, and facilities for activities in which a company holds a competitive advantage. (Business Dictionary.com) In discussing this moral dilemma within the context of this paper, the term “outsourcing” encompasses both the outsourcing of American jobs to foreign countries as well as importing foreign workers by U.S