Research Topic: Overseas Corporate Job Outsourcing

What is outsourcing?

• Outsourcing is the procuring of services or products, such as the parts used in manufacturing a motor vehicle, from an outside supplier or manufacturer in order to cut costs. It is also defined as a practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally.

• Outsourcing is an effective cost-saving strategy when used properly. It is sometimes more affordable to purchase a good from companies with comparative advantages than it is to produce the good internally. An example of a manufacturing company outsourcing would be Dell buying some of its computer components from another manufacturer in order to save on production costs. Alternatively, businesses may decide to outsource book-keeping duties to independent accounting firms, as it may be cheaper than retaining an in-house accountant.

Questions to be addressed:
How big a phenomenon is this? Is it growing? Why? What IT technologies enable this? What trends can be observed? Where are jobs being outsourced to? What are the pros/cons associated with this trend?

Required Readings:

1. Pros and Cons of Overseas Corporation Outsourcing

http://news.thomasnet.com/IMT/archives/2002/10/the_pros_cons_o.html

2. What is Overseas Corporation Outsourcing?

http://www.cio.com/article/40380/ABC_An_Introduction_to_Outsourcing/1

3. Outsourcing Trends

http://news.cnet.com/Five-outsourcing-trends-to-watch/2100-1022_3-6195142.html

Powerpoint at the bottom page, under attachments