Outsourcing Essay

1534 Words7 Pages
Outsourcing Thesis: How outsourcing jobs has affected IBM’s Human Resource Management Department I. What is outsourcing A. Factory work to outside contractors B. Management responsibilities C. Human Resource Management duties II. Why use outsourcing A. Reduction in labor force B. Saving’s factor C. Technological advantages D. Increase customer satisfaction III. Winners A. Stockholders B. CEO’s C. Clients D. Outside contractors IV. Losers A. Local employees I. Families B. The community Conclusion - - Outsourcing is not the solution for all of corporate America, but for IBM it is the only profitable way to operate. Outsourcing, this is a…show more content…
Since its inception more than 20 years ago, IBM has been a leader in its field. Despite this success, over the course of the last several years, IBM has found that in order to keep itself competitive, corporate restructuring has been necessary. As such, practices such as downsizing and outsourcing have become quite popular for the company. In 2002 IBM signed a deal with Fidelity's Employer Services Company to outsource its HRM department. Of the IBM's 1,200 human resource employees, Fidelity retained 450. “The growth of HR outsourcing will continue to gain momentum as organizations reap the benefits, including significant cost savings, new capabilities and services for employees, and enabling HR to focus on more strategic work that is integral to the business,” Bryan Doyle, president of Hewitt’s HR outsourcing group, said in a press release (Gurchiek). Why are companies looking to outsourcing more of their jobs? One of the most appealing aspects is the reduction in labor. This reduction fits in with the new idea of streamlining. More can be done with less therefore more can be earned. The market place today is extremely competitive, and every advantage counts. Millions of dollars are saved by turning to outside contractors. Not only do companies save on wages, they save from not having to provide benefit packages. Revenue saved can be put to better product development, and new research. A major reason
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