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Cost savings — The lowering of the overall cost of the service to the business. This will involve reducing the scope, defining quality levels, re-pricing, re-negotiation, and cost re-structuring. Access to lower cost economies through offshoring called "labor arbitrage" generated by the wage gap between industrialized and developing nations.[10] Focus on Core Business — Resources (for example investment, people, infrastructure) are focused on developing the core business. For example often organizations outsource their IT support to specialised IT services companies. Cost restructuring — Operating leverage is a measure that compares fixed costs to variable costs. Outsourcing changes the balance of this ratio by offering a move from fixed to variable cost and also by making variable costs more predictable. Improve quality — Achieve a steep change in quality through contracting out the service with a new service level agreement. Knowledge — Access to intellectual property and wider experience and knowledge.[11] Contract — Services will be provided to a legally binding contract with financial penalties and legal redress. This is not the case with internal services.[12] Operational expertise — Access to operational best practice that would be too difficult or time consuming to develop in-house. Access to talent — Access to a larger talent pool and a sustainable source of skills, in particular in science and engineering.[13][14] Capacity management — An improved method of capacity management of services and technology where the risk in providing the excess capacity is borne by the supplier. Catalyst for change — An organization can use an outsourcing agreement as a catalyst for major step change that can not be achieved alone. The outsourcer becomes a Change agent in the process. Enhance capacity for innovation — Companies increasingly use external knowledge service providers to supplement limited in-house capacity for product innovation.[14][15] Reduce time to market — The acceleration of the development or production of a product through the additional capability brought by the supplier.[16] Commodification — The trend of standardizing business processes, IT Services, and application services which enable to buy at the right price, allows businesses access to services which were only available to large corporations. Risk management — An approach to risk management for some types of risks is to partner with an outsourcer who is better able to provide the mitigation.[17] Venture Capital — Some countries match government funds venture capital with private venture capital for start-ups that start businesses in their country.[18] Tax Benefit — Countries offer tax incentives to move manufacturing operations to counter high corporate taxes within another country. Scalability — The outsourced company will usually be prepared to manage a temporary or permanent increase or decrease in production. Creating leisure time — Individuals may wish to outsource their work in order to optimise their work-leisure balance.[19] Liability — Organizations choose to transfer liabilities inherent to specific business processes or services that are outside of their core competencies. [edit] Implications

Some effects of globalization: The United States is the center of globalization trends – we drive most of the world’s economy, influence international policy, and financial transactions. The prime paradigm is capitalism – a faithful reliance on the market to drive decisions. Global forces like the World Bank promote decentralization and privatization.  Governments get out of the way, leave services to private groups. Inherent in capitalism is an unequal distribution of wealth. Having wealth generates more wealth, having no resources leaves countries at a severe disadvantage. Technology is one kind of resource and wealth. Countries that have technology, use it to develop new products, markets, ideas… and financial power.

What are globalization effects on Education (in the U.S.) Heightened competition between nations to develop an educated labor force; nations need a competitive niche. Education is seen as a mechanical process – develop basic skills, technical skills, competitive skills. Movements like standards and testing develop from this view of education. The cultural philosophy of capitalism, decentralization, and privatization manifest in strategies such as independent schools, charter schools, and vouchers. Higher education (colleges and universities) are more closely tied to the private sector – it is a necessary reality. Technology is seen as a key area for education, but how is technology important? View 1 -People trained directly in the hard sciences and technology fields contribute to those lucrative markets. View 2 – Information technologies impact how people work, play, gain information, and participate in communities. Those who can use IT to further their own aims win out, those without access or skills lose out in the new world.

d a popular NBC sitcom.

We knew what the charade was—outsourced

workers in India pretending to be American

the government encourages the growth of "netpreneurs" and venture capitalists