Essay on Impacts of Technology on Outsourcing

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Impacts of technology on Outsourcing
Outsourcing has become so prevalent in recent years that one can say that we are living in an age of outsourcing. Outsourcing have grown globally on such a scale that many companies and organizations have uprooted their entire workforce and moved them to across nations for various reasons. The global outsourcing market has continued to grow exponentially within in the past decades which would explain why many companies flock to it. According to Chamberland (2003), the global outsourcing market was estimated at 72 billion dollars in 2002, estimated to rise to 100 billion dollars in 2005 and to increase exponentially in the coming years. With such enticing figures, many companies flock to reap from the
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This allows the service provider to manage the business processes which may include resources that are necessary to providing services. For example, the technology, equipments and personnel are transferred to the service provider. The amount transferred to the service provider often depends on the magnitude or complexity of the services to be carried out. Additionally, the magnitude and complexity of the service also determines the how long the relation between the organization and the service provider.
Chamberland (2003), also points out that outsourcing’s transfer of ownership to the service provider differentiates it from other business relationships. In other business agreements, if an organization still retains its processes, then the organization is purchasing time which is a services relationship. However, if the contracted service provider owns and controls the processes, then the organization is outsourcing. For example, a manufacturing company that hires an outside IT company to help repair and maintain its computer system is not outsourcing. On the other hand, a manufacturing company that transfers some of its business processes to an outside service provider that will provide customer service and Human resource management services back to the company for some years is outsourcing.
Much like other business agreements, there are
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