Outsourcing
The advances in both the first and third worlds in addition to the development of technology has caused a shift in what countries do what from an industry standpoint and the measures that businesses are able to take and choose to take as it relates to keeping costs down. There are benefits to the consumers and the businesses but there are also some notable drawbacks and downsides, at least to the perception to many, in these shifts of industry and what countries specialize in what work.
The United States' industrial/professional composition has shifted at least two times in a major way since the inception of the country. When the country was started, it was dominated by agrarian business and economic components. The Industrial Revolution in the 1800's brought a shift to manufacturing. In the last few decades, there has been yet another shift towards service sector and professional-level jobs such as accountants, lawyers and doctors. Parallel to that is the tactic of many businesses to shift many lower-level service jobs as well as a lot of manufacturing positions overseas or south of the border in Mexico to save on labor costs. Indeed, many countries do not even come close to the minimum wage and other benefits afforded and mandated for employees in the United States and corporations have been taking advantage of the fact that countries like Mexico, China and India offer the same basic level of work performed for a lot less per hour. This tactic has led to a marked decline in manufacturing in the United States as well as a loss of a lot of service jobs to countries like India.
There are upsides to the shifts as many employers can focus their domestic employees on more sophisticated tasks and jobs or they can lower the headcount of firms in general to keep human resources and payroll expenditures to a minimum. However, this is deemed as a betrayal to many American workers who insist those jobs should never leave the United States and should instead be done here regardless of the cost savings when the work is done elsewhere. Indeed, there is some credence to that when it comes to things like it being obvious that a customer service representative is not an American and/or does not speak English as their first language. It is also a point to concede that many goods that come from China and other parts around the world other than the United States do not pass the rigid product safety guidelines and regulations that are in force in the United States.
However, in the day of rabid shareholders and of consumers who demand lower prices for their consumable and hardline goods and in light of the fact that competing firms will do the outsourcing at the drop of a hat even if one particular firm does not, it can render horrible consequences for a firms' bottom line and viability to not follow suit with what the wider industry is doing. Hocking good under the moniker of "Made in America" is often enough to get patronage from people that are willing to pay a bit more for their goods but many people are extremely price-conscious and will absolutely pay a lesser price if they can find it even if the good is imported.
However, the potential downsides to relying on foreign-made goods has other downsides other than what is mentioned above. There are also upsides as well. Additionally, there are negative conditions and events surrounding the debate and there are good ones as well. First up, despite the fact that a lot of service and manufacturing jobs are going overseas, the United States are still clearly dominant in both fields even if some of the simpler jobs are being offshored. Indeed, high-tech manufacturers are often scrambling for the talent they are after because a lot of the applicants the come across simply are not qualified to do the work that needs to be done (Krouse, 2013). In addition, jobs like accounting and finance are very lucrative for employees but not everyone is willing to get the schooling and
Contracting officers today must have the skills or competencies required to become the business leaders of the future (Steele 2000)." An article found in the ABA Banking Journal asserts that Chief Information Officers are interested in it outsourcing because companies are able to acquire it skill sets that may not be present at the internal level. In this article Siemers (1995), explains that One of the reasons CIOs believe that
In addition research has found that estimate that nearly 252,000 computer programming and computer software engineering jobs could be outsourced 2015(Zarocostas). However, 1.15 million new IT jobs could be produced by 2012 (Zarocostas). In addition to the increased number of jobs that are being outsourced. Such outsourcing impacts the economy in many ways. Although many argue that outsourcing has a positive effect in the long run, for many workers outsourcing
Ltd., 2007). Furthermore, by 2008, real GDP is expected to be $124.2 billion higher than it would be in an environment without it software and services offshore outsourcing (Flatworld Solutions Pvt. Ltd., 2007). Finally, over the last 10 years, the economy has created an average of 3.5 million new jobs a year, and the vast majority of displaced workers are re-employed within six months. According to Flatworld Solutions Pvt. Ltd.
The focus of this area has shifted to Web application development including the development of complex, highly integrated enterprise system platforms beyond the scope of client it departments. This shift has actually accelerated the financial performance of Indian outsourcers to such a great extend that their goals are now to catch IBM in revenues and eventually surpass them in terms of consulting revenue. The outsourcing of complex it projects
Outsourcing Jobs and Labor Laws Outsourcing Jobs to Foreign Countries Without Fair Labor Laws government currently does not prohibit companies from outsourcing jobs to foreign countries that do not have unions and/or fair labor laws. Whether this practice is acceptable or should be stopped is worthy of consideration. There are two main reasons for researching this topic. First, the cost to outsource to foreign countries is often much less than the cost
Outsourcing Case Study: Saving Money at the Magazine through Process and Supplier Selection Every business must contend with the decision of how many of its necessary processes and the products and materials utilized in these processes will be internally sourced and accomplished, and which processes and procurements will be outsourced to other companies (Monczka et al. 2008; Trent 2007). This magazine operation is no different, and with the sudden reduction
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