How Technology Has Changed The Future Of A Company 's Success, Or Lack Thereof

By 2004, more than 80 percent of U.S. executive boardrooms will have discussed offshore sourcing, and more than 40 percent of U.S. enterprises will have completed some type of pilot or will be sourcing IT (information technology) services. In fact, some of the biggest firms in the United States have been seriously discussing outsourcing recently. One of these companies being IBM, the world's biggest computer maker, discussed saving about $168 million beginning in 2006 by moving thousands of programming jobs overseas, according to internal information provided. U.S. businesses, battered by the recent three year bear market in stocks and an economy struggling to find its footing, have already developed a taste for super cheap labor in developing countries, where workers are increasingly better trained especially if they've spent significant time working in the United States on temporary visas. The impact of overseas outsourcing could be significant; many economists doubt the trend is big enough yet to disrupt the broader U.S. economy. Imports of business services account for less than 1/20 of 1 percent of gross domestic product, the broadest measure of the nation's economy. At the least, it's not doing much to end the longest U.S. labor-market slump since World War II. More than 9.3 million people are

Many businesses in United States manufacture their product overseas. This involves manufacturing products outside United States where the labor cost is cheaper. Because of cheap labor, it is often more economical for a U.S. company to manufacture overseas and pay the shipping costs than to manufacture in the United States. For a company, the savings may be substantial. However, there are negative impacts on U.S. employment, as many jobs in the United States are being outsourced and replaced by overseas positions. The manufacturers outsource production projects to save time, money or resources. The manufacturing is outsourced so as to remain competitive and maintain a steady work flow. Without outsourcing, manufacturing costs could escalate to the point at which no product would sell and all employees would have no work. Outsourcing comes

Outsourcing emerged on the financial arena during the 1980s and has since then been spreading. Outsourcing production was furthered with the process of globalization which provided a new component leading to the strengthening of resources, skill and labor specializations across the world. The process of outsourcing is using the skill and abilities of a third-party to accommodate society on the foundation of labor. As stated earlier, it was during the 1980s that the process kicked off mainly due to the efforts of corporations when they began to hire labor forces across the world. Even though outsourcing has come out from its developing stages, there are still following effects on the US economy.

The phenomenon has created major suffering for many American and as this outsourcing continues to spread, Americans will demand action (R. Hira 2008, p-95). The book also adds that scholars Ralph Goory and William Baumol have shown that even when the basic model of the economics are used trade does not make both the trading partners better off. The trading in one country will have a negative impact while trading in other country will have a positive impact. The country with negative impact will definitely affect its economy. United States economy being the world’s largest economy; historically, it has maintained a stable GDP growth, a low unemployment rate, a high level of research and capital investment funded by both national, and because of increasing saving rates, increasingly by foreign investors. But offshore outsourcing has increased the unemployment rate dramatically in the decade. And so the economy worsened day by day.

While outsourcing may be beneficial to some of the companies partaking in it, the general consensus is that it ultimately proves to be harmful to the American workforce. The act of outsourcing and shifting many company call centers and technical support teams, or “low skill service jobs,” to foreign countries reduces jobs for those that could truly benefit from them within our own country. The unemployment rate has dramatically increased, and continues to rise, compared to what it has been in years past; yet there are numerous companies which still insist on handing over these “low skill service jobs” to people in other countries such as India. The most obvious and logical reason for outsourcing is reducing costs; people are working for

Globalization is a very pressing issue in the American culture today. Within any economy, globalization will cause many problems while at the same time solving many others. This is true because there are many factors involved with globalization, one of the most important being job outsourcing. While at first glance and from what the media reports, job outsourcing is definitely not healthy for the economy. However on upon closer inspection, the reverse may be true. Job outsourcing, though initially stressing on the workforce, is helpful in creating a strong economy.

Outsourcing is a practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally. (Investopedia) Outsourcing jobs has become increasingly popular in the economic realm of the world since the mid-20th century and has since then become a more controversial topic. The United States economy has been under the microscope for the last 4 years due to the economic recession. In today’s global business competitive environment, companies must find innovative ways that adapt to new strategies to sustain revenue generation, while also remaining competitive. This paper gives the effects that I have found to be most pertinent to the ongoing debate over outsourcing jobs, and how it can affect the U.S economy.

Communication is such an important part of everyone’s daily life, not only in one’s personal life but also in organizations. Also now a day, we are becoming every year more and more global and working with different countries and cultures around the world. Henceforward, globalization is increasing, which makes communication a very important part of doing business internationally.

Because of the internet, now knowledge processed outsourcing could occur. The internet made American businesses realize that workers oversees could do jobs like data entry, billing and accounting for low wages. Today, X-rays and radiology reports can be sent in a second and anyone in the world could analyze it. Financial investment research and paralegal work could happen from across the world. Any subcontractor from around the world could now be used for outsourcing. The internet has created a whole new genre of outsourcing taking more jobs from

On the short run, it probably hurts the economy, but in the long run it will be beneficial to get cheaper products, then other Americans can work at other things economically. In other words, outsourcing has both benefits and down sides to the U.S. economy. By looking at both sides of the outsourcing, there are advantages and, of course, disadvantages on outsourcing jobs. One of the advantages is to lower the product cost. Outsourcing and offshoring began as cost-cutting measures, but companies that create real sustained value routinely use them for far more strategic ends–to gain capabilities that they don’t have in-house, or to strengthen capabilities they do have. We have found that 85% of those winners use capability-sourcing broadly and strategically for everything from developing world-class talent to bringing new products to the market faster and enabling business model innovation. In other words, they have moved way beyond mere cost-cutting (“Outsourcing Can Do Much”). Another advantages, Free up resources for the better uses in the U.S. Beneficially, U.S. talents and experts highly establish rapport on our economic development. Big corporations, protects American experts to dive in and focus on to get the U.S. market faster and boost innovations. It allows companies to focus on their “core competency.” Innovating and inventing new products ahead and above our U.S. competitors in the rapidly

Abstract This paper will discuss offshore outsourcing and the effects it has on the American worker in a technology environment. We begin with the scope of the problem and how it has changed the economy for better and for worst. Various figures representing miscellaneous data about off shoring will be represented. The topics include the background and nature of offshore outsourcing, reasons for outsourcing, why trading promotes gain, current economic standing from outsourcing, and finally how outsourcing affects wages and employment. In the summary various solutions and ideas are given to propose a change to the industry in hopes that the American worker will be more prosperous from an economic standpoint.Introduction

     According to Philip Kotler, “Today’s economic landscape is being shaped by two powerful forces-- technology and globalization.” Offshore outsourcing is made possible by these same two factors. This is not surprising, given the history of technological advances’ effects on the economy. Advances in communications technologies and information technologies are making it possible. Several jobs can be performed at one place while reporting to another, by electronically sending the work wherever it is needed. And offshore outsourcing is having a tremendous affect on the economies of the countries

Markets are increasingly becoming globalized, hence escalating shipping volumes. Trade between countries without a common border is carried mainly overseas. Due to the spectacular rise of trade vis-à-vis economic growth, world trade since the 1950s has more than trebled to 45 per cent of

The ease of offshoring and the benefits it provides makes the idea of global expansion very attractive, but there are still aspects of offshoring that make the concept undesirable to others. There is large opposition to the idea of outsourcing jobs to foreign countries when there is such a high level of unemployment here in America. By 2015 the number of American jobs expected to be lost to outsourcing since 2000 is 3.3 million according to a recent report by Forrester Research (“Outsourcing, PBS”).

Offshore outsourcing represents one aspect of how globalization is occurring in the current economies. Globalization is the interdependency of transportation, distribution, communication, and economic networks across international borders. (Gibson, Ivancevich, Donnelly, Konopaske, 2009) It means that the labor supply market is globalized and that cross-cultural management can become essential and more important than ever before.