Is Outsourcing Wise
Is Outsourcing a Wise
Corporate Strategy?
YES: BusinessWeek, from “The Future of Outsourcing,” Business-
Week Special Report: Outsourcing ( January 30, 2006), http://www
.businessweek.com/magazine/content/06_05/b3969401.htm
NO: Ephraim Schwartz, from “Painful Lessons from IT Outsourcing
Gone Bad,” InfoWorld.com (August 25, 2008), http://www.infoworld
.com/d/adventures-in-it/painful-lessons-it-outsourcing-gone-bad-032
ISSUE SUMMARY
YES: BusinessWeek writers argue that outsourcing is likely to become even more important to corporate America in the near future. Indeed, they suggest that it has the potential to transform whole industries.
NO: InfoWorld columnist Ephraim Schwartz explores the oftenoverlooked costs associated with failed …show more content…
Strategic Management 11. Is Outsourcing a Wise
Corporate Strategy?
© The McGraw−Hill
Companies, 2010
217
the development of sweatshops in Third World countries (see Issue 2 in this text).
On the other hand, supporters often claim that increased competition from globalization virtually requires outsourcing as a business strategy (see Issue 17). And depending on which side of the protectionism issue is being considered, outsourcing is presented as either pro- or anti-American (see Issue 18). Given the antagonism toward outsourcing that exists in the minds of many, one might reasonably question whether outsourcing is a wise course of action for a fi rm to follow.
Proponents of outsourcing have strong points on their side of the issue. The call to end outsourcing is, in their view, merely protectionism in disguise, a concept entirely at odds with traditional American political and economic principles.
American capitalism and prosperity were built on free trade; forcing American fi rms to forego cheap overseas labor in the name of patriotism will ultimately cause US fi rms, and society, to suffer. In terms of the exploitation of foreign labor
Corporate Strategy?
YES: BusinessWeek, from “The Future of Outsourcing,” Business-
Week Special Report: Outsourcing ( January 30, 2006), http://www
.businessweek.com/magazine/content/06_05/b3969401.htm
NO: Ephraim Schwartz, from “Painful Lessons from IT Outsourcing
Gone Bad,” InfoWorld.com (August 25, 2008), http://www.infoworld
.com/d/adventures-in-it/painful-lessons-it-outsourcing-gone-bad-032
ISSUE SUMMARY
YES: BusinessWeek writers argue that outsourcing is likely to become even more important to corporate America in the near future. Indeed, they suggest that it has the potential to transform whole industries.
NO: InfoWorld columnist Ephraim Schwartz explores the oftenoverlooked costs associated with failed …show more content…
Strategic Management 11. Is Outsourcing a Wise
Corporate Strategy?
© The McGraw−Hill
Companies, 2010
217
the development of sweatshops in Third World countries (see Issue 2 in this text).
On the other hand, supporters often claim that increased competition from globalization virtually requires outsourcing as a business strategy (see Issue 17). And depending on which side of the protectionism issue is being considered, outsourcing is presented as either pro- or anti-American (see Issue 18). Given the antagonism toward outsourcing that exists in the minds of many, one might reasonably question whether outsourcing is a wise course of action for a fi rm to follow.
Proponents of outsourcing have strong points on their side of the issue. The call to end outsourcing is, in their view, merely protectionism in disguise, a concept entirely at odds with traditional American political and economic principles.
American capitalism and prosperity were built on free trade; forcing American fi rms to forego cheap overseas labor in the name of patriotism will ultimately cause US fi rms, and society, to suffer. In terms of the exploitation of foreign labor