Outsourcing
Outsourcing has become a major trend in the corporate world in the past ten years. To American workers, this is a killer of high-paying U.S. jobs. It has been so brutal especially to manufacturing firms across America and to the ordinary citizen it has become uncomfortable to talk to someone located in India about an American issue, notwithstanding the reality of the language and cultural barrier. Over the years my whole personal opinion is that jobs are being taken away from us and this is a real threat. In this paper, my intention was to study this trend and why it is so appealing to corporate America.
Per the requirements of this course, I have collected materials about this subject from a website, a popular magazine, and a refereed journal. As I read more and more into this issue, my perspective is slowly going through a transformation. An enlightening article in the BusinessWeek calls this trend “transformational outsourcing.” Outsourcing is really about “corporate growth, making better use of skilled U.S. staff, and even the creation of better jobs for everyone.” Business reports revealed that several manufacturing firms who tried outsourcing realized tremendous savings in labor costs by an average of 30%-40%. Savings were in turn used to fund developmental projects and create radical business models that can give them potential edge in their industries. Corporations who are engaged in outsourcing realized tremendous gains in productivity, efficiency, quality, and revenues.
On the other hand, there has also been resistance to the outsourcing trend. A lot of experts remain cautious. How do you manage employees y ...