Offshore IT Outsourcing

Running head OUTSOURCING INFORMATION TECHNOLOGY OFFSHORE The Impact of Outsourcing Information Technology Offshore Strayer University Abstract This study explores Offshore IT Outsourcing by U. S. companies. Within the study, information will be provided on the details of Offshore IT Outsourcing including the advantages and disadvantages. It also evaluates different strategies for offshore Information Technology Outsourcing that could benefit both U. S. employees and employers. This study utilized qualitative information provided by a number of internet journal articles and other studies that provide research on the performance of Offshore Outsourcing. Within this study, library resources include electronic and computer database searches.
They work to find ways to reduce costs without considering the economical or social impacts. The use of Offshore Outsourcing is one of the methods companies are using to increase their profit margin. Offshore outsourcing is the practice of hiring an external organization to perform some or all business functions in a country other than the one where the product or service will be sold or consumed. Reducing operating costs requires finding cheaper sources of labor, and these sources usually reside outside of the United States. Offshore Outsourcing is no longer the wave of the future it is the current direction most businesses are focused. While companies are rewarded for reducing their costs, it has resulted in the displacement of a large percentage of U. S. technical workers. This study proposes strategies that should be put in place by Corporate America to re-skill or refocus Information Technology personnel in other areas of the company instead of displacing them. Acknowledgement I like to thank God the author of my faith for designing me to be an African American female. No other country allows you to live out your dream to its fullest potential. More amazing, no other country allows you to have unlimited dreams with each being
Executives of many U. S. corporations feel that the only way their businesses can stay afloat and remain competitive is to rapidly reduce their operating costs. Reducing operating costs requires finding cheaper sources of labor, and these sources usually reside outside of the United States. Offshore Outsourcing is no longer the wave of the future it is the current direction most businesses in virtually every industry are focused. Many companies using offshore outsourcing have reported that they have experienced at least a 30 to 40 cost savings as a direct result of offshore outsourcing. When offshore outsourcing first became a trend, it resulted in the displacement of a large percentage of U. S. workers, skilled and unskilled. As offshore outsourcing evolves, leaders of organizations are learning to leverage their offshore resources while transitioning their current employees to work on corporate opportunities in the business strategy that concentrates on market growth. Corporations use offshore companies to perform tasks that have been refined onshore, and they try to redirect their freed up staff toward new targeted areas. As a result