Outsourcing It Jobs: Pros and Cons
Outsourcing IT Jobs: Pros and Cons
In 1973, a monumental shift was prevailing where U.S. companies were sending low skilled jobs within the manufacturing industry to offshore countries to reduce labor cost while maximizing profits. The effect of the jobless manufacturing work force was a shift of those laborers to focus on and perfect the service industry of what it is today (Koch 1). During the high tech recessions of the late 1990s and a nominal expansion of the present time, the Information Technology industry, an industry which through continuous innovations enabled the companies and corporations of America to become more efficient and productive, is also facing the outsourcing similarity with manufacturing. While outsourcing manufacturing jobs offshore requires movement of raw materials and building new factories, Information Technology jobs could be outsourced much quicker than manufacturing jobs, as the majority of its roles and responsibilities are mobile. Overseas outsourcing of IT jobs has quickly become a controversial national issue. Outsourcing involves far more complicated advantages and disadvantages than the debaters on either side are willing to admit (Weidenbaum).
Outsourcing can help a company operate in an increasingly competitive global marketplace. Outsourcing can enable a business to provide 24/7 coverage, especially for consumers who need around-the-clock support (Weidenbaum). In the next several paragraphs, I will discuss from a microeconomic level the actions that my employer implemented to take advantage of globalizing the work force to reduce costs, the issues my organization is facing with offshore efforts on the other hand, and then the cost associated with this trend towards macroeconomic within the U.S. As a result of the worst high tech recession of late 1990s, most high tech companies saw their revenues plummet significantly. This resulted in net losses or barely positive net income. As a result, the CIO’s budgets for
In 1973, a monumental shift was prevailing where U.S. companies were sending low skilled jobs within the manufacturing industry to offshore countries to reduce labor cost while maximizing profits. The effect of the jobless manufacturing work force was a shift of those laborers to focus on and perfect the service industry of what it is today (Koch 1). During the high tech recessions of the late 1990s and a nominal expansion of the present time, the Information Technology industry, an industry which through continuous innovations enabled the companies and corporations of America to become more efficient and productive, is also facing the outsourcing similarity with manufacturing. While outsourcing manufacturing jobs offshore requires movement of raw materials and building new factories, Information Technology jobs could be outsourced much quicker than manufacturing jobs, as the majority of its roles and responsibilities are mobile. Overseas outsourcing of IT jobs has quickly become a controversial national issue. Outsourcing involves far more complicated advantages and disadvantages than the debaters on either side are willing to admit (Weidenbaum).
Outsourcing can help a company operate in an increasingly competitive global marketplace. Outsourcing can enable a business to provide 24/7 coverage, especially for consumers who need around-the-clock support (Weidenbaum). In the next several paragraphs, I will discuss from a microeconomic level the actions that my employer implemented to take advantage of globalizing the work force to reduce costs, the issues my organization is facing with offshore efforts on the other hand, and then the cost associated with this trend towards macroeconomic within the U.S. As a result of the worst high tech recession of late 1990s, most high tech companies saw their revenues plummet significantly. This resulted in net losses or barely positive net income. As a result, the CIO’s budgets for
Cited: Goodwin, Bill. “Outsourcing users taken by surprised”. Computer Weekly. (2006): 4. Koch, Christopher. “Back Lash.” CIO Magazine. (2003): 1 – 3. http://www.cio.com/archive/090103/backlash.html Koch, Chris. “What CIOs Can Do.” CIO Magazine. (2003): 1. Terry, Rory L. “Answers on Outsourcing.” CNN Money Magazine. (2004): 1 – 3. Weidenbaum, Murray. “Outsourcing: Pros and Cons”. Executives Speeches (2004): 31 - 35 http://www.cio.com/archive/090103/backlash_sidebar_2.html