Outsourcing And The Third World Essay

2257 Words10 Pages
Hope, Keala, Austin2
Outsourcing in the Third World The problem of outsourcing is not new, but is still a keen business problem for today’s economy. Both manufacturing and services are able to be sent overseas. Our company is deciding whether or not to outsource, and if so what and how much we should outsource.
Summary of the Situation
Outsourcing has been around in some shape or form for many years. The outsourcing today is a fairly recent development however. It has developed off the economic relationship between developed and developing countries. This started around the 1970’s with companies like Dell and Cisco (Leavy 47). Once other companies saw the potential profits to be made from outsourcing, they too began to outsource basic manufacturing overseas (Leavy 47). This began an outsourcing revolution that resulted in today’s current economic situation. Developed countries are labeled as the “Donor Countries” and send certain parts of their manufacturing overseas (Smith 3). Outsourcing has been defined by the Merriam-Webster Dictionary as “To send away (some of a company 's work) to be done by people outside the company.” In a modern economic sense however, people use outsourcing to mean to send work outside of the original country,usually in order to save money, although it has also been done for political reasons among a multitude of other reasons. Most companies outsource low-level manufacturing. When people think of modern day outsourcing, two main examples
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