OUTSOURCING

By Kristina Price, Elizabeth Yepez, Amanda Rosenblum and Frank Munoz

WHAT IS OUTSOURCING?
Outsourcing is the relocation of jobs from one company to another, often to a company in another country.

WHY DO COMPANIES OUTSOURCE?

The most common reasons companies outsource jobs are the reduction of operating costs (it costs less to train outsourced employees, ect.), more resources outside of parent company, and the improvement of a companys focus.

EXAMPLES OF OUTSOURCING
In Thomas L. Friedmans book The World Is Flat, he explains the outsourcing of American jobs to India, and how the Infosys spokeswoman accompanying me casually mentioned that last year Infosys India received one million applications from young Indians for nine thousand tech jobs. (Friedman, 264)

EXAMPLES OF OUTSOURCING PART 2

Another example that Friedman gives us is an outsourced man who actually starts outsourcing himself. The outsourcee had become the outsourcer!...We told ourselves: If business process outsourcing can be done from cities in India to support cities in the developed world, why cant it be done by villages in India to support cities in India?

EXAMPLES OF OUTSOURCING PART 3

Yet another example of outsourcing would be this: If you were the owner of a company and did not have enough money or resources to hire American employees or open warehouses in America, you could outsource to another country that way your costs regarding employee training and management and the cost of simply renting a warehouse in another country would stay in your fiscal ability.

FRIEDMANS VIEWS ON OUTSOURCING

Thomas L. Friedman maintains a mostly neutral stance on outsourcing: he doesnt support it 100% as it takes away Americans jobs, but he realizes it can be used for good business practices and is sometimes necessary.

FIN
All excerpts taken from The World Is Flat by Thomas L. Friedman