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Outsourcing. 1.1 What is Outsourcing? Outsourcing is subcontracting a process, such
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Outsourcing & Data Analysis. Outsourcing/ Data and Analysis Outsourcing
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Outsourcing. TOPIC ... intervention. Outsourcing increases the number of US jobs,
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Outsourcing and make-or-buy decisions. Outsourcing and make-or-buy decisions. ...
Nonetheless, there are critics of the outsourcing function. ...
Submitted by edge_crusher on April 10, 2006
Category: Business
Words: 2587 | Pages: 11
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Outsourcing has become a major issue this past year. The main reason is the onset of a presidential election in November. Those opposed to outsourcing say it is merely a trend. For example, “Joe Ironside, business agent for the Machinists Local 831 in Cedar Rapids, said anything they can get rid of or do at one-tenth the cost they’ll do” (Foley, 2004). Proponents of outsourcing “point to findings by the McKinsey Global Institute, which said of the $1.45 to $1.47 of value created globally from every dollar a domestic company chooses to divert abroad, the U.S. economy captures $1.12 to $1.14, or 78 percent of the total value” (Bourge, 2004). Obviously there are many reasons why businesses are utilizing outsourcing, and there are many reasons why people are enraged about the increase of companies participating in outsourcing.
One of the main reasons companies are employing outsourcing is the decrease in salary costs when compared to the United States. For example, “Kaiser Vice President Mary Henderson said the company has transferred about 200 information –technology jobs to Indian companies, paying between $25 and $30 an hour instead of $80 to $100 an hour in the United States” (Ridder, “High-Tech Workers Nervously Eye Work”, 2003). This is an enormous cut in cost for Kaiser. Kaiser and other information technology companies operate this way because they are trying to meet their quarterly projections and keep their investors content. Companies previously worried solely about profit to stay in business, but now companies have investors. Those investors want to see soaring profits so they receive the maximum return on their investment. Of course, the CEO’s of companies make money from this alliance as well. For example, “Aviva last month revealed operating profits of 1.91 billion Pounds, after it cut cost through outsourcing to India and improved its...
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