Essay about Where Has My Job Gone?

In general, the outsourcing is hiring the foreign workers/company to do a particular task, as opposed to hiring domestic workers/company. Besides the outsourcing, the international purchase is an essential activity of companies. In the trend of a booming global economy, a company only focuses on its core value and hire suppliers to supply the necessary product and service. The relationship between companies are complicated and interdependent.

Opting to outsource R&D is also a good business strategy when the skillset is not found within the organization. No matter how talented a company is, it simply cannot possess all the talent and innovation under one roof. Thus, outsourcing R&D allows companies to utilize talent pools from all over the world. Companies may even outsource within their own country by hiring contractors or freelancers. For example, in order to stay competitive, technology companies simply do not have the time to conduct in-house R&D. Instead, it is more efficient to outsource or acquire unique technologies of other companies to expand their technology portfolio relatively quickly and align itself with talented people. For example, Yahoo, Inc., an internet search engine tool, acquired Flickr, a photo sharing site – a completely different component than its own. Acquisitions give companies the ability to acquire a product that is already created; access to a talent pool that has experience employing the technology; and a market that is familiar with the product. Acquisition is also a strategic way to eliminate a competitor and become an active player in the competitive market rather than

The reason trade makes life easier is because of a principle called comparative advantage. To illustrate what comparative advantage is, I’ll use two countries: country A and country B. Let’s say that country A is good at producing food, but not good at producing shoes. Country B excels at manufacturing shoes, but is lacking in the food processing industry. Both countries, by themselves, will have a harder time living until they decide to trade with one another. Since country A is better at making food, and B is better at manufacturing shoes, they should specialize in what they do best and trade with one another to both benefit. Country A can produce far more food when they don’t have to worry about shoe production, and country B can manufacture more shoes when not worrying about planting and harvesting food. This is the principle of comparative advantage. Trade allows countries to specialize in producing goods that they have the advantage in, while still having other commodities purchased by trading their manufactured goods. This principle works great for countries with good economies and many resources, but what about in developing countries where they don’t have comparative advantage in anything? Wheelan answers this question in his book Naked Economics. He says, “Workers in Bangladesh do not have to be better than American workers at producing anything for there to be gains from trade. Rather, they

There are many benefits of outsourcing that companies and countries seize to take advantage of. The biggest benefit is reduced costs of infrastructure and labor. According to the OneNeck IT Solutions, “The attraction to overseas outsourcing has traditionally been reduced costs. By moving support services to India or China, for

One effect of outsourcing is that it economically benefits American firms both domestically and abroad, and these benefits are the reason outsourcing is so prevalent in today’s world.

Imagine third world countries poverty stricken and hungry! Outsourcing in these areas helps spark the economy across the globe. By outsourcing jobs here it helps others less fortunate in these types of regions, have more and there by having the ability to spend back, making more jobs available to Americans. Outsourcing

· Choose the right location: The type of work being outsourced will influence the location. India has gained a reputation for software development. Between 2003 and 2004 it has seen over a 30% growth in software and IT service exports, and by the year ending in March, 2004, Indian companies have earned $12.5 billion in technology exports. But India is not the only source of reliable but inexpensive labor. Countries such as China, the Philippines, Romania, Argentina, and even Ghana and Ireland are all centers for offshore operations of various

In analyzing the second reason listed for why outsourcing is used; ‘inability to attract the highest caliber of employees to job functions that may be peripheral to the organization’s core discipline’, companies employ a different kind of outsourcing tactic. This reason leads to offshore outsourcing solutions. If a company cannot attract high caliber domestic employees to job functions secondary to their main function then they seek help where labor may be less expensive and more efficient.

“Today, Indian outsourcing is one of the best ways for CIOs to cut application development and maintenance costs, and deal effectively with the peaks and valleys of software demands.” (Yeo). Outsourcing to India is still focused primarily on highly technological aspects, but is not limited there. They are known for creative development in the pharmaceutical field, and have recently developed an unsurpassed medication for adult ADHD. Their superior IT assistance is not limited to companies, they offer many websites for individuals seeking help with programming. In mid 2007, U.S. outsourcing to India reached $4.9 billion. Although technologically advanced, they still lag in economic prosperity and therefore still don’t expect the type of compensation that Americans do. “They

Textile and apparel companies see many advantages to outsourcing their manufacturing. The number one reason a company usually outsources is to lower their costs. Outsourcing allows companies to obtain a technically skilled, multilingual, and inexpensive workforce. A company can hire an engineer in India for $10,000 a year, whereas in the United States an engineer would cost $60,000 '' 90,000 a year.[8] This is a huge cost saving that can lead to huge profits.

By freeing up resources like time, human capital and money, businesses increase efficiency as outsourcing to a specialist in the respective field will allow companies and businesses to focus on their core activities and continue what they do best to bring the companies to greater heights.

Dash, S. & Agarwal, R. (2005). Determining India’s Edge in IT Outsourcing: A Cross Country Analysis of Comparative Advantage in IT, in Upadhay V.ed. et.al (2005) Productivity and Quality Research, Tata Mcgraw Hill, New Delhi.

The economic globalization in India began in the 90’s with the economic growth being due too advances in IT and business. “One of the major forces of globalization in India has been in the growth of outsourced IT and business process outsourcing (BPO) services” (1). The past few years have seen more and more educated people due to India’s low cost of labor but educated and English speaking workforce. With economic globalization hitting India in the IT and BPO field it has allowed companies to expand their operations to India to take advantage of their massive growth opportunity. The ability for corporations to expand to India has enabled huge corporations to open up markets in India allowing for great success. “Notable examples of international companies

Despite its deceleration over the past few years, India has become one of the most attractive places to outsource operations for corporations due to several important factors: Its young, well-educated low cost labor (Median age 27, according to the World Fact Book, CIA), the gradual economic liberalization and industry deregulation and their several technical skills are only to mention a few of the characteristics that make, along with China and certain other rising Asian nations, serious candidates for hosting big corporation’s foreign direct investments (Ranker, 2014). But India has had to come a long way to stand to where it is now. Several events throughout history have made the nation struggle, from religious to political issues, from

India is facing competition from other countries around the world in IT outsourcing. China, Ireland, The Philippines, Malaysia, Vietnam, Poland, and Egypt are just some of the countries that aggressively looking at IT outsourcing for growth. Over the years these countries have been developing their country to be able to provide IT outsourcing and lay a strong foundation to sustain this new idea.  According to KPMG (2016), some of the investments these countries have done are built a huge market share by delivering a wide-range of services across the products line, insights across industries, investments in industry specific offerings and intellectual property tools/templates