| If you own a computer or piece of electronic | | | | 4. Free up space in company buildings for other uses |
| equipment, chances are you may one day have to | | | | 5. Increase speed of delivery for outsourced |
| make a call to a tech support or customer service | | | | activities |
| department. And if the product in need of repair | | | | 6. Increase quality of delivery for outsourced |
| happens to be manufactured by one of the many | | | | activities |
| companies that bases its IT or customer service | | | | 7. Free up management time |
| support center in another country, your experience | | | | 8. Reduce cash outflow |
| with the representative with whom you spoke likely | | | | 9. Increase employee productivity |
| plays a large part in your general opinion of the | | | | 10. One theory on outsourcing states that |
| outsourcing debate. | | | | outsourcing boosts the U.S. economy by stimulating |
| Outsourcing, also called "offshoring" when referring to | | | | trade and creating more jobs |
| overseas workforces, is commonly referred to as | | | | 11. Outsourcing works both ways - many jobs in |
| the practice of transferring jobs to other countries in | | | | America are jobs that have been outsourced to |
| an effort to reduce company labor costs. As more | | | | America by foreign companies |
| people lose their jobs to outsourcing or become | | | | 12. Some companies claim that bilingual workers in |
| increasingly frustrated by having to overcome | | | | foreign-based call centers will benefit people who live |
| language barriers to communicate with service | | | | in the U.S but who speak English as a second |
| employees, the outsourcing trend is failing to meet | | | | language |
| with general approval in the United States. Reactions | | | | Cons: |
| to a 2004 poll in King County, WA concerning the | | | | |
| economical impact of outsourcing varied, but many | | | | 1. Loss of jobs for Americans, especially those in |
| respondents felt that long-term outsourcing will | | | | customer service or technical fields |
| generally harm the American economy and | | | | 2. Loss of direct control by the company over the |
| workforce. | | | | management |
| "...As a consumer, I feel cheated that a company | | | | 3. Quality problems, especially since, as stated by the |
| wants my money but doesn't want to pay my | | | | CIO outsourcing guide, American workers outrank |
| neighbor $7 or $8 bucks an hour to take my calls," | | | | overseas workers in terms of the size and availability |
| one respondent wrote. "'Globalization' is an | | | | of the labor force, education level, relevant |
| international term for 'feeling free to get away with | | | | experience, language skills and turnover rates |
| cheap labor.'" | | | | 4. Slow response time, which can only lead to the |
| Regardless of public opinion, however, the | | | | frustration or anger of the customer |
| outsourcing of IT jobs, nay, jobs in general, does not | | | | 5. Some customers have problems understanding the |
| seem to be going the way of the dodo just yet. The | | | | accents of overseas service agents |
| CIO 2006 Global Outsourcing Guide, released in July, | | | | 6. Slow resolution times |
| cites the 2005 Duke University CIBER/Archstone | | | | 7. Many companies that outsource either lack internal |
| Consulting study, saying that 73% of Fortune 2000 | | | | process policies for specifying work or lack the the |
| companies cite offshoring as an important part of | | | | ability to effectively manage internal communication |
| their overall growth strategy. India is the number one | | | | 8. Due to a variety of factors, many overseas call |
| destination for U.S. company outsourcing, and many | | | | centers are unable to produce desired results for the |
| companies name China as a front runner for future | | | | customer |
| outsourcing possibilities, along with several Latin | | | | 9. A reduction in product sales led by customers who |
| American countries, such as Brazil and Mexico. | | | | are either frustrated with the company's service or |
| As with most large-scale corporate practices, | | | | who boycott companies that outsource |
| outsourcing has its benefits and its downfalls. Though | | | | 10. The problems above usually lead to unhappy |
| outsourcing obviously has positive impacts to the | | | | customers, employees, and unions |
| economy and citizens of the countries to which the | | | | Although the benefits to the companies seem to |
| jobs go, it hs left many Americans disgruntled, | | | | outweigh the benefits to the American people, low |
| jobless, and distrustful of corporations that practice it. | | | | labor costs will likely continue to be the driving factor |
| A variety of arguments can be made for and against | | | | behind offshoring, and current trends do not show a |
| outsourcing : | | | | decrease in the practice. To ensure long-term financial |
| Pros: | | | | success, companies must properly serve their |
| The technique is a money-saver for the corporations | | | | customers, regardless of whether or not this entails |
| who employ it. Specifically, from a business | | | | outsourcing work. By focusing on striking a balance |
| perspective, outsourcing can potentially: | | | | between saving money and providing the customer |
| 1. Lower personnel costs | | | | with quality products and services, a company has a |
| 2. Gain economies of scale | | | | better chance of sticking around in the market to |
| 3. Allow focus on the core competencies of the | | | | serve the same loyal customers in the future. |
| company | | | | |