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helen g

The Hindu Business Line : ArcelorMittal may tap Indian IT cos for infrastructure play i... - 0 views

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    The issue of globalization and cultural diversity is raised in this article which deals with the realm of business. Steel Maker ArcelorMittal is planning to outsource certain IT infrastructure to India and smaller European countries such as Poland in order to be able to save money and reduce costs. The stakeholders in this situation are the CEO's of ArcelorMittal, the local IT companies in India and the small European countries being outsourced to, as well as the governments of India and the small European countries, the current IT workers of ArcelorMittal, the IT workers in India and the small European Countries, and the people who buy steel from ArcelorMittal. The IT systems involved in this scenario are PCs, servers, data centers, and networks. IT workers in India and small European countries such as Poland will be working with ensuring privacy on these systems as well as taking care of their maintenance. A positive issue that results from the outsourcing of ArcelorMittal is that the company will be able to save money by paying its workers less. This would lead to a decrease in steel prices as well, which would be beneficial for the consumer. Also, outsourcing gives good job opportunities to people in the countries being outsourced to. However, through outsourcing many current IT workers of the company will most likely loose their jobs. Indian workers are also being exploited due to the fact that they are being payed less than a worker in a more developed nation would be payed. Lastly, local IT companies need to compete for workers.
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.
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
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.
Kim T

BBC NEWS | Business | India dismisses outsourcing fears - 1 views

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    India who has been receiving many jobs from other countries due to outsourcing tries to convince these countries that its advantages outweigh the advantages. Countries like the U.S. and the U.K. say that outsourcing harms their economies and is not up to quality standards. However India tries to defend this system, saying that the British economy has still been able to flourish even after outsourcing but admits that they need to keep training their workers to speak with foreign accents for better customer understanding.
Joel Lubi

Outsourcing to India Draws Western Lawyers - 2 views

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    This article is about outsourcing of lawyers in India to cut costs and do work that would otherwise be reserved for those often unskilled young lawyers. By relying on outsourcing to do the petty and tedious tasks of Western law firms, lawyers are saving their time, money, and are given access to a much larger work force for a given price. The combination of these main points greatly increases efficiency around the law firm and allows the lawyers to be more focused on doing their job effectively and with more depth. People with experience in outsourcing from a variety of industries strongly encourage the use of outsourcing for the simple and mundane tasks of the business for a multitude of reasons described before that could save the company a great deal of time and money.
sarah d

Profit Outweighs Risk in Juárez Factories - 0 views

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    This article is about the United States outsourcing manufacturing jobs to Mexico. Some companies in El Paso are also thinking of outsourcing to Juarez. At the same time, there have been more than 2500 killings due to drug issues, forcing thousands of residents to flee and businesses to close. The stakeholders are the retail businesses and the residents forced to find safety somewhere else. Assembly line workers, being paid $1.60-$2.00 an hour are also stakeholders in this situation. The system of outsourcing jobs, has created violence as well as low standards of living for the assembly-line workers. The issue at hand is how globalization and cultural diversity changed the way business is done. By outsourcing jobs, businesses are willing to accept higher profits, even with bad working atmospheres and internal tension.
Daniell S

The Pain of Change at Boeing - 0 views

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    This article is about a book, and how it has ended the friendships between companies and employees. The article then goes into the topic of building a Boeing plane. A survey was sent out to the employees by the authors of this book to see if the company would make changes to its structure. However, many employees were laid off due to outsourcing. In the words of the article "Two aims of the outsourcing were to cut costs and to gain access to more foreign markets; both of those goals were largely achieved. " This shows that with outsourcing many people lost their jobs but the quality of the product was better than before. The 787Dreamliner had become much better with the technology used instead of the employees creating it. The employees were once treasured and considered themselves a family of sorts, but being replaced by Boeing they were obsolete and were easily expendable. The authors of the book say that anyone in top management should read this book and rethink their strategies for running the business. The book should also be read by the employees so they can work together to restore this idea of a family. The ethical issues in this idea of getting rid of workers so that better quality work can be done. By outsourcing jobs this allows the company to save more money than it would with having employees.
Madeline Brownstone

Tieto Gets Outsourcing Contract From Nokia Siemens - WSJ.com - 3 views

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    This article is primarily concerned with the announcement of two companies, Tieto and Siemens, joining in an outsourcing contract. According to the article this is done in order to increase the business benefits. In the perspective of business, the move is more profitable, and allows both companies to expand globally in term of the audience. The two companies are well known, especially for certain groups of people, so by joining some aspects of their business, they will be able to join their individual audiences. By the companies working together and using employers from both businesses then they will be able to generate a larger acceptance and recognition. Globalization makes this possible, and optimizes the profit and efficiency of both companies. However, it can lead to problems involving the jobs of the people who work at either of the two companies. Tieto, specifically, is using forty of the workers from Nokia Siemens. This means that jobs will be lost from the people who work at the original company. Instead of giving the jobs to people at the headquarters, the jobs will go to the people off site. This will benefit the companies, as it is the most beneficial business scenario, but will take a toll on the lives of the unemployed. However, the amount of jobs that are being added in one company and taken away in the other company is very small in comparison to a much larger company that needs to expand greatly. The use of VOIP and the internet itself allows the smooth interaction between the two companies and with the growth of IT, more and more methods will be introduced for the companies to interact without leaving their respective office. Because Nokia and Tieto have been partners for several years, they have been utlizing these methods of communication that are different from having everything on site and going to meetings in person. Yet, they have decided that the partnership, using outsourcing, is the best possible way for both companies to grow. Thus, outs
nicholas n

India in Dire Need of Civil Engineers - NYTimes.com - 1 views

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    This article addresses some of the problems with out sourcing in India. It was an interesting article since normally we here how america suffers from outsourcing, but this article addresses some of the problems that come with the country that obtains the outsourced jobs. The stakeholders are the the Indian government who wish to improve the infrastructure. The workers of India who go to IT related jobs because they pay more money, even if they majored in other fields. The companies that our outsourcing jobs in the first place, and one could consider the colleges. The primary ethical issue is globalization, this issue concerns outsourcing itself(can't figure out another ethical concern). The primary IT system is software created by Indian workers
Olivia M

India Outsourcing Companies Ramp Up Hiring As US Demand Grows - 1 views

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    In this article, the author talks about how companies are relying on outsourcing to hire employees. Its odd because the companies think it is better for US mainly because they are able to keep their workers and not that they are able to provide Americans with cheaper service. It also made me realize the small percentage that Americans make up of the workforce. This means that there is huge competition between American and Indian workers because they are both competing for the same jobs. But Indian workers have an advantage because they have lower wages. Companies want to choose Indians because they get to save money even though its putting Americans out of work. This is a disadvantage because then Americans won't have money to pay for the services or products.
Arafat Chowdhury

Outsourcing to India Draws Western Lawyers - 0 views

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    This article is about the outsourcing of lawyers in India as the title says. By "draws western lawyers", its says how the cost has become cheaper for many lawyers to use Indians to do the small tasks that require a lot of time. The Western lawyers can use the Indians to save their own time and money and gain access to a larger work force, however for a certain price. With all these benefits from outsourcing the issue of globalization is involved. Western lawyers are using Indians across the world to get the work done at a lower price. Money is what these firms are tackling but also the efficacy of the work and the experience many Indians have (or the Indians learn through training). Jobs are available to them and this helps the economy of India but not the economy of America. The stakeholders thus are the Indian employees and the Western lawyers.
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.
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.
Yuval S

Outsourcing to India Draws Western Lawyers - 2 views

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    There is a huge increase in India's Legal outsourcing business. Many of these companies use hundreds Indian lawyers who do the hard work that young lawyers in the United States usually have, at a fraction of the cost. Some Lawyers in the Unites States go because "they say they stay for the opportunities to build a business and manage people." Some issues of this is that the Westerners must adapt to India's environment. Managers estimate that "About 5 percent of Western transplants cannot handle it and move back home."
Felipp Crawly

Amazing Customer Service - 1 views

I would like to thank Onward Process Solutions for greatly helping me with my need for assistance in a Customer service outsourcing project. They provided me with 24/7 phone/ email answering serv...

started by Felipp Crawly on 31 Oct 12 no follow-up yet
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.
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