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Lenny H

Offshoring Outsourcing's Next Wave: How High? - 1 views

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    This article has to do with both offshoring and outsourcing. I thought this was an interesting article to read after reading the article we read in class because it gave a variety of examples of offshoring and outsourcing. This article gave a variety of point of views on the debates around both offshoring and outsourcing. First the article introduces a few examples of outsourcing such as computer processing and back-office business tasks. The author introduces ethical impacts the outsourcing creates because it uses technology and humans that are cheaper rather than using humans that are experts at a field. They also state that the current BPO offshoring profits in Indian have the potential to grow, but we are not allowing it to. People in a variety of countries are being payed less because of the differences in currency because of outsourcing. The author mentions Mr. Bourgeois, and his claim that "Mr. Bourgeois says, makes about $50 an hour, while in India a developer is paid perhaps $10 an hour. If the wages of the American developer are growing at 3 percent a year, and the Indian 15 percent a year the cost advantage will last a long time, he noted." The author mentions that there are a variety of parts of the debate on offshoring and outsourcing. The stockholders for these situations are the business people making money, the people working in foreign countries for less money, and people working the same job for more money. This is a great article to read after the one we read in class because the author provides the reader with a variety of point of views, and how the debate on offshoring and outsourcing can change if we can add other point of views.
Mark Gakin

Outsourcing: Its Effects on the U.s Economy and Leadership - 0 views

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    This article is about how companies use outsourcing and offshoring as a way to reduce costs and as a method for cheap labor. One of the articles' main points about outsourcing is that the decision to outsource is often in the interest of the company to reduce costs, divert or energy-saving measures aimed at making the skills of a particular company or for the more efficient use of labor, capital, technologies and resources. One problem that arises from outsourcing is that it takes much-needed jobs from the U.S. economy. It is not too different from offshoring, because both are beneficial for companies and used to cut costs. When a company chooses to offshore, it means that it does its business in another country. This 'other' country is usually a developing country because rates tend to be much cheaper there, which is exactly how businesses save money. One of the main issues, again, lies within the U.S. economy. Since US businesses are leaving to do business in other countries, the US economy is suffering quite a blow because less companies are becoming dependent on it. This is a big problem and could lead to an even bigger one for the business because third world countries cannot always be trusted. Even though they are saving so much more money by offshoring, the business they now perform is unreliable and could possibly be affected my many more problems. The main stakeholders in this issue are the businesses who are offshoring and outsourcing, the US government, and the countries the businesses now rely on. Also, depending on the company, people in America tend to suffer as well because since the main issue that arises is reliability, the users or owners of the product may not have the same service. For example, if Time Warner decides to station in India, the workers there may be inexperienced and the company will not be able to do anything about it. This means that when the users of Time Warner call their main number, someone in India will pick up. The probl
Carmen M

'Offshoring' advice upsets firms - 1 views

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    This short article talks about how leaders of the chamber commerce (An association of businesspersons and merchants for the promotion of commercial interests in the community)(answers.com) has recommended businesses in the UK to engage in offshoring, meaning taking their businesses outside. However, some greatly resented this and stated that it was "betraying" and "killing british skills"(Luckock). Members of the chamber commerce said that this could expand the business, and make it more competitive. The primary stakeholders in this case would be, the business owners, memebers of the chamber commerce, and the people that would be given the jobs due to offshoring. This is directly connected to business and employment. The companies owned by the men that dont want to go "offshore" are the business, while employment would be all the jobs that would be offered to those who need it if only the owners would agree to it. Lastly, while it does not say what IT would be used, it wont be technology that would be very complex. Especially, if you're sending these jobs offshore to certain countries whose people might not be exposed to all the technology that we have.
T Graham

Page 2 Bringing IT outsourcing closer to home - ComputerworldUK.com - 1 views

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    This article presents a unique view of outsourcing from the perspective of the big businesses turning to places like India to save money in labor. This article argues about the negative aspects of offshoring. The author Naoum argues that the negatives of sending IT labor to India outweigh the positives. Naoum writes that even though offshoring may save money in terms of lower costs to pay Indian workers many business owners are not aware of the hidden costs associated with this type of move. He goes on to give statistics of businesses who have sunk due to offshoring without researching all the costs. Naoum points out that business owners may be solely focused on the fact that they are saving some money but ignore that consequences that include the lowering of labor quality and "business innovation." The article mostly focuses on the American or European business owner who is considering offsourcing. The area of impact is business and employment because it involves first world businesses and the labor (employment) of skilled third world citizens. The issue raised in this article is that of reliability he is questioning the quality of IT business done in these nations and whether or not it is worth the extra costs. At the end of the article he suggests outsourcing somewhere a little closer where people are more skilled and the hidden costs are not a threat. For example he suggests outsourcing to Spain where 20% of the older workers are educated in the use of IT. Naoum also raises the issue of security in offshoring to a place like India. He uses the example of a business that outsourced to India and experienced a leak of sensitive information about its clients. Naoum brings an alternate view about outsourcing/offshoring, he points out the negative aspects that people don't usually recognize.
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    Seems like you missed the point of data security.
Santiago P.

Why IT Jobs Are Never Coming Back - Computerworld - 0 views

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    I chose this article because I found that it especially related to the field that we are currently studying in. It is that of ITGS, Information Technology. IT jobs are more and more frequently being offshored to nations like India. There is an obvious issue relating to Business and Employment, or in this case, a rising unemployment. The main stakeholders are the IT workers, who, with the hopes of entering a strong workforce, are having their jobs offshored by multinational companies like IBM and HP (these companies are also primary stakeholders). The primary social and ethical issue involved is that of equality of access. This is due to the fact that access is becoming more widespread - access to technology, computers, databases, servers - all throughout the world. There is no longer "the need to be local", as the article states. People's jobs can be moved to a cheaper place, where it won't be so expensive for the company to keep its workers. Offshoring is not only creating higher levels of unemployment, but helps worsen the U.S. economy while it strengthens foreign economies.
Mariam B

Intel and J.P. Morgan Chase to Expand Indian Operations - 1 views

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    Intel is a company that develops processing technologies such as chips that are put into computer hardware. However recently they have decided to outsource certain necessary business operation to India instead of in the US. Additionally Intel has agreed with an investment banker named Morgan Chase, to invest about 1 billion of the company's money into this plan. Intel already has many of it's workers in India however wants to expand the business by increasing its workers within the company. Workers will be needed to help expand the company a long with workers both qualified and graduates due to the increased opportunities and positions. The reasoning as to why Intel continues to offshore work to India is because they are able to find high quality workers and can get work done at cheaper/lower costs. The organization affected mainly is Intel who is able to make a profit through investing in the workforce in India. Additionally the people who are in India that are given the jobs are able to benefit because more jobs are becoming available. The negative side to this is that, they are not paid as much as Intel workers in the US. Additionally another stakeholder is the U.S government itself that frowns upon the idea of offshoring jobs due to the knowledge that by doing this, job oppertunities available to Americans will decrease. The social and ethical issues and impacts of these are related to globalization and its impacts on both the country (India) and the United States. Although workers are given jobs the pay that they receive is not as much as a worker in the U.S would. This is done for the economic benefit of the country Intel itself, allowing them to create a greater profit by off shoring jobs to India. However those who are highly qualified and trained are able to find a job at Intel that matches their level of training. Thus they become employed if they need money. A positive impact to globalization is getting rid of the digital divide in a sense because fr
Ram Bhadra

Offshoring blamed in part for IT's jobless recovery - 2 views

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    A very slow recovery is seen in the field of IT after the economic melt down however the bad economy is half the problem since another factor which has been growing since a very long time. It is offshoring of IT jobs from developed countries such as US and in Europe to countries such as China and India. It is also predicted that the IT jobs shall go down by 50% in the next four years in Europe and US.Also in this article the solely blames outsourcing for lack of jobs in developed countries and does not talk about how leads to growth in economies of developing nations which increases the consumption of goods manufactured in the developed countries and also leads to creation of new jobs. Hence this article has only one opinion. It does not talk about the growing opportunities for IT workers in countries besides the US and so on. It should focus on how offshoring had led to the ceasing of digital divides since individuals in developing nations now have economic power to consume similar products as Americans or Europeans and also the growing economies give the government chances to improve the infrastructure. Hence in the end it benefits all.
Jialin C

Banks to send IT roles offshore - 1 views

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    An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax location that provides financial and legal advantages. These advantages typically include: low or no taxation and easy access to deposits. This article discusses how the TSB bank is offering IT roles in India based on the back's outsourcing plans. According to the spokesman, the UK IT jobs would be offshored to support international growth of services; which would result in a dramatic cut to the domestic IT workforce. The primary stakeholders, are the the domestic IT staff and the IT roles that are being established in India and Africa.
Elisavet M

Offshore Outsourcing's Next New Wave: How High? - 1 views

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    The emergence of Business process outsourcing has transfigured the ways in which companies in developed nations, expand their services globally to businesses in developing nations. Although the cost for labor to support the extension of company engagement in third world countries is acknowledged as being relatively low (a beneficial advantage to most established business corporations), it has come to the attention of the participants (Businesses of developed countries) that it is of major importance to fully recognize the boundaries of business practices, culture, and level of intellectuality and experience within the hired portion of developing nation populace. Companies of information technology services, such as Dell, have come to form heightened concern about such global barriers, having attempted to transition call center labor in India and then deciding upon the withdrawal of such communication employment (due to the lack of consideration of business and cultural differences that impact business results). Based upon the data provided by NASSCOM (Indian software and services trade association), the conclusions drawn positively indicate that Business offshore processing has an overwhelming potential to grow in the next couple of years; although there is much room needed for consistent business growth (developing businesses, such as BPO in India, must rise at least 30 percent), the progression lies mainly upon the driving increase of skillful and educated information technology workers within India. The stakeholders, Information technology businesses in developed nations, surely stand by their statement supporting the increased use of qualified employers in the business environment of developing nations' companies (considered to also be additional stakeholders), for this will lower the cost involved in the off shoring process. The main social and ethical considerations lie upon reliability of developing nations'
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    My entire post was not posted on diigo, so here is the continuation: business functions, as developed countries' companies increasingly form reliance and trust upon the promise of the elevating skilled labor class, for it is a major component that supports the foundation of software and hardware services and networks on a globally connected basis. The reliability built within the business partnerships and bonds established in two differing cultural environments, is founded upon the agreement of mutual advancement and progress in regards to the establishment of skill by developing nations' employees. Although, the system of globalization and cultural diversity surface the obstacle of continuous intellectual and business development for developing nations, it is the gesture of surpassing cultural and business ideology that will truly trial both stakeholders involved.
Jaymee C

Study Plays Down Export of Computer Jobs - New York Times - 0 views

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    This article is about how people are fearing that they will lose their jobs to people in other countries like many have before them. Big companies are choosing to hire those in places like India and China because it turns out cheaper for them. A report says that 2-3% of jobs in IT would go offshore annually over the next 10 years or so. This report is also trying to calm workers by saying that more jobs will arise from this. For people losing their jobs and those in the field of information technology, this news is not comforting. The president of the Association for Computing Machinery, David A. Patterson, noted that not many people are interested in majoring in computer science in the US so it makes things harder for there to be jobs for them. If more were to take an interest in the computer sciences then there might not be a big issue about offshoring jobs.
Kristin O

BBC NEWS | Business | HSBC bank 'to offshore more jobs' - 0 views

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    This article is about HSBC's pplans to keep outsorucing clerical jobs in diferent countries. This has many owrkers upset because they feel this is eliminating their jobs and putting caps on their wages. THe social and ethical issues involved are Equality of Access and Policies and Standards. There are impacts on the Bank as well. There is the economic impact, they are saving alot of money for setting up call centers they save about $20,000 - $30,000 per job it moved into the call center. There is a psycological impact the bank has to deal with and that is of their unhappy workeres in their base country. Finally there is a global impact, with more call centers the bank may be able to gain new customers in those countries. THe relevant stakeholders besides the banks are, the workers of HSBC bank, customers of the bank, politicians and media, other countries where centers are set up. This includes, India, China, Malaysia, Phillipines, Sri Lanka and Vietnam. The primary IT System are the call centers. This involves the use of WANs and LANs. There are also vairous ways in which call centers can be set up. They can use cloud computing or even be created virtually through the development of software as a service. The employee would only have to susbscirbe to a software that would allow them to work in the center, this makes it easier to receive updates as well.
Rubayeth M

Ohio bans offshoring as it gives tax relief to outsourcing firm - 2 views

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    In Milford, Ohio the governor Ted Strickand is trying to stop all outsourcing because his two major reasons are the "threat of of a job but an IT security risk." Then it goes more deep saying how more than 90% of the workers are Indian and 7% and lower have job in America. Strickland is more concerned with the issues which are jobs, data security, privacy,and identity theft risks.
Mohammad A

Intel and J.P. Morgan Chase to Expand Indian Operations - 0 views

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    Intel, a major computer-chip maker and Chase, the investment banker thats gone global, are now planning on outsourcing many important tasks to India, leaving what will left in the United States as high-proficiency jobs. Many other companies such as Cisco are also following Intel and J.P. Morgan Chase's lead by sending "lower-proficiency" jobs and tasks to India, leaving more space for jobs here. Immense amounts of money are being spent by Intel (1 billion dollars in investments and 800 million dollars in research).
Karen M

BBC NEWS | Business | India faces battle for outsourcing - 0 views

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    This article is about the issues that India is now facing because they are the world leader in IT outsourcing. The IT system in this article is the call centers that are located in India. The area of impact is Business and Employment. Outsourcing provides jobs for the citizens of India. Their employment is at risk because of the fact that India now has to compete against other countries for the same outsourcing jobs. The stakeholders are the Indian workers, global customers, competitors, and the companies who are outsourcing. The Indian workers now need to work even harder to keep their jobs because there are other countries who are trying to step up their people so that they could be capable of doing the same work. For example, Africa is starting to become well-known in the world of outsourcing because they have the same amount of talent and can also speak English. India is no longer the first country that comes to mind when companies are thinking about outsourcing. Other countries are willing to do the same job for less money, leading for companies to choose them over India. There have also been cases where the customers are not satisfied by the calls that they make offshore. This would play into the decision of the company of whether they want to move their outsourcing site or not. One issue mentioned in the article is security. There have been instances in which a customer's financial information has been sold by unscrupulous employees. By outsourcing, the head company is putting a lot of trust in the company they hire to do the job. They are risking their customers' satisfaction by allowing foreign countries manage their operations. Although a call center may not seem really important in the company, the workers are still dealing with customers of the company and should make sure to keep them satisfied. If the customers are not satisfied, they would probably take their money and invest in another company who would give them a more secure experience.
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