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 2 SANFORD HIGHLIGHTERS ACCENT 2 SIDED 3 PACK CHISEL TIPPED LIQUID NEW $6.99 Time Remaining: 8d 12h 3m Buy It Now for only: $6.99 |
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Sanford Accent
Outsourcing-What's the Big Deal
Outsourcing in the United States of America
Whether reading the daily paper or the Wall Street Journal, or speaking on the phone with your credit card company, it becomes very prevalent that outsourcing to foreign countries is everywhere. Where did this trend come from? What are reasons for this new business tactic? What are some benefits and some disadvantages of outsourcing?
Outsourcing to foreign countries, in this scenario, is when United States companies contract out different aspects of labor to foreign countries. This is also known as offshoring. It was once thought that if work was to be outsourced it would be unskilled manufacturing labor like that of assembly line work. Today we see a larger amount of information technology work of IT being outsourced more frequently then manufacturing labor and in greater quantities. A report done in 2009 by AMR Research Inc. showed that approximately 80% of businesses intend on either increasing their amount of IT outsourcing or keep it the same. Back in 2004 even State Representative of Georgia had this to say on outsourcing: ""At first it was like, 'Oh, don't worry, it's just all these old manufacturing jobs that are going overseas, but now it's these computer jobs that everyone got degrees for."
There are several reasons that companies turn to outsourcing, but there are two major reasons that can be found in almost all cases. The first, and most obvious, is that outsourcing to foreign countries reduces direct costs, specifically wages, of the particular service or services being outsourced. This is because when companies look to outsource they generally target developing countries or countries where wages are significantly lower. A great example of this can be seen in the IT field. India is one of the largest destinations for outsourced IT work. IT workers in India with 1-4 years of experience fluctuating in level of skill receive salaries ranging between what is equivalent to 5,000 to 9,000 dollars in the United States. Even very skilled senior IT workers in India with 20 years under their belt are only receiving the equivalent of 40,000 dollars. It is clear that there is much to be saved by U.S. companies in salaries alone when outsourcing is implemented.
When companies choose to outsource in most cases work being outsourced is simple minuscule work that is time consuming and expensive for the small amount of skilled that need be applied. This leads to the second major reason for outsourcing which is outsourcing allows for more of a focus to be put on important core business activities, another reason why IT work is so frequently outsourced. Instead of spending time on simple tasks companies can focus more on such things as research and developing new products in our ever changing economy. Also from another aspect, companies that main strengths aren't, for example, in the IT field can outsource to more specialized IT companies saving on costs and being more proficient.
Although outsourcing seems to be a great idea if you're a business there are several negative factors that come into play. Probably one of the most thought of disadvantages is a bad public image, especially in the United States where national pride is very strong. When companies such as Ford and Harley Davidson, American companies to the core, make decisions to outsource their public image takes a blow, which could result in negative effects in other aspects of business such as sales. The idea that American jobs are being taken away and moved offshore doesn't sit well with many Americans. The government also doesn't like this idea either and so companies deciding to outsource can also run into different government restrictions. In many cases in the U.S. manufacturing jobs being outsourced often have labor unions and as seen with Harley Davidson and other companies when outsourcing is chosen employees may go on strike. If not then employees that managed to maintain their jobs are now not working to the best of their ability for fear that their job too will soon be outsourced. Lastly, and perhaps a more frequently experienced disadvantage is the language barrier in the case of outsourced work to foreign call centers. For many customers it is difficult when speaking on the phone to understand employees of foreign call centers due to their accents. To many customers that is very frustrating and discouraging.
Will this trend of outsourcing ever come to an end? In the January 2009 edition of the New York Times, Rod Bourgeois a technology specialist for Sanford C. Bernstein and Company stated that outsourcing was growing at an annual rate of 29 percent until the financial crisis struck, but starting in 2009 he is predicting a return to the growing trend in outsourcing. It is not all bad news, though. A survey done by BDO Seidman LLP, an accounting firm, asked several technology CFO's (Chief Financial Officers) if they were to outsource where would they choose to do so? The strongest response was 22% chose the United States.
About the Author
My neighbor, he's a NASCAR guy. He wears a Kyle Petty hat...?
...stands about 6'3" tall, and is very skinny. He has a heavy Northern accent and always wears jean shorts; summer, winter, it doesn't matter.
I am going to start calling him by the name "Fred Sanford" when I address him, in hopes he will change his disgusting ways.
Do you think this will work, or just serve to confuse him?
I likes all the nice peoples.
My kind of crowd....
Sounds like a regular guy to me. Invite him into your trailer for a bath. LOL That is a funny question, thank you
2008 Hyundai Accent in Sanford, FL 32771