IBM Takes Over Outsourcing

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Outsourcing Introduction Among the list of controversial issues relating to jobs and the economy in the United States, outsourcing is right up there near the top. Politicians frequently attack each other using the phrase, "sending our jobs overseas…" and many a politician has been stung by this accusation. Thesis: While there are clearly benefits to be realized by companies that engage in outsourcing, there are also difficulties, drawbacks, and unanticipated expenses associated with outsourcing. Outsourcer, beware, should be the motto going into to any outsourcing arrangement. IBM Takes Over Outsourcing for Auto Parts Maker Visteon Outsourcing in many instances is a profitable alternative for technology companies. It would appear that taking on outsourcing contracts can be more lucrative than manufacturing technology components. Indeed, IBM's outsourcing projects have meant billions of dollars in profits while the company transitions from manufacturing and selling its computer technologies to providing services instead. In the early 2000s, IBM began moving away from manufacturing software and hardware for computers disk drives, displays, and monitors and began moving into the business of selling "sophisticated packages of services to software clients," according to John Hechinger writing in The Wall Street Journal (Hechinger, 2003, p. B.3). In 2003, IBM entered a deal with Visteon to handle its data centers and help desks; Visteon was spun off from its parent Ford

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