Outsourcing: Business in the 21st Century

Visitors: 173

In today’s world it makes more sense than ever for business to outsource much of their work. When a company chooses to outsource part or most of its work they save money on the maintenance of a full time employee which of course leads to larger profits. That’s what business is all about, larger profits, lower overhead, but all this comes at a price. The cost of outsourcing is that it could be a danger to the economy.

In December 2003, IBM decided to move the jobs of nearly 5,000 programmers to India and China. GE has moved much of its research and development overseas. Microsoft, Dell, American Express, and virtually every major multinational from Accenture to Yahoo has already offshored work or is considering doing so, with 40% of the Fortune 500 expected to have do follow suite. The savings are dramatic: Companies can cut 20% to 70% of their labor costs by moving jobs to low-wage nations-assuming that the work is of comparable quality.

Just as drastic are the loss of jobs and suffering of the people left behind. So far, at least, that enhanced productivity hasn't translated into jobs at home. Offshoring is encrouching into the educated classes, both in the United States and elsewhere, affecting jobs traditionally considered secure. People whose livelihoods could now be at risk include everyone from IT experts to accountants, medical transcriptionists to customer-service representatives.

Fortunately there is a way for companies to have the convenience and cost effectiveness of outsourcing and still contribute to a healthy economy. There are many qualified and cost effective companies within a business’ own national community that can get the job done for a reasonable price resulting in an increase in company profits.

The most logical answer to the recent outsourcing crisis within the United States and many other nations are for business’ to realize that outsourcing doesn’t have to equal off-shoring to be cost effective.

James Hunt has spent 15 years as a professional writer and researcher covering stories that cover a whole spectrum of interest. Read more at http://www.outsourcing-central.info


Article Source:

Rate this Article:
21st Century Leadership - How to keep work flowing to achieve business goals
Rated 4 / 5
based on 5 votes

Related Articles:

How to Make Your Business Thrive in the 21st Century

by: Paul Jerard(October 23, 2005)
(Business/Customer Service)

The Number One Key for Business Success in the 21st Century

by: Wayne Messick(November 20, 2006)

Positioning Your Business Globally For 21st Century Success

by: John Alquist(July 23, 2006)

The Perfect Home Business Model For The 21st Century

by: Andrew Cass(July 25, 2007)
(Home Based Business/Network Marketing)

Conducting 21st Century Business A Sharks Tale

by: Robert H. Oppenheimer(July 29, 2008)

Educate Innovatively With the Help of 21st Century Educational and Business ..

by: Margit Barreras(May 05, 2008)
(Book Reviews/Educational Science)

Is Your Local, Independent Business Prepared To Thrive In The 21st Century?

by: Jerry Anderson(November 19, 2007)
(Internet and Businesses Online/Site Promotion)

Sales Management Selling and Business Development in the 21st Century

by: Sam Manfer(August 01, 2008)
(Business/Sales Management)

19th Century Advice for 21st Century Communicators

by: Rix Quinn(July 27, 2005)

21st Century Leadership - How to keep work flowing to achieve business goals

by: Neil Miller(February 08, 2010)
(Business/Change Management)