A paper on outsourcing in computer companies

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A paper on outsourcing in computer companies

Innovation offshoring[ edit ] Once companies are comfortable with services offerings and started realizing the cost savings, many high-tech product companies, including some in Silicon Valleystarted offshoring innovation work to countries like ColombiaBelarusSouth Africa, India, China, Mexico, Russia A paper on outsourcing in computer companies Ukraine.

Accessing the talent pools in these countries has the potential to cut costs or even shorten product lifecycles. Developing countries like India are also involved in this practice. When offshoring knowledge work, firms heavily rely on the availability of technical personnel at offshore locations.

A paper on outsourcing in computer companies

One of the challenges in offshoring engineering innovation is a reduction in quality. Examples include universities in Shanghai, such as Tong-Ji Universitywhere German firms and scholars co-sponsor labs, courses, and provide internships.

Similar examples of collaborative arrangements can be found in Eastern Europe, e. Insourcing "Re-shoring", also known as "backshoring" [14] or "inshoring" [15] is offshoring that has been brought back onshore.

Further, the rising costs of transportation could lead to production nearer the point of consumption becoming more economically viable, particularly as new technologies such as additive manufacturing mature [17] Transfer of intellectual property[ edit ] Offshoring is often enabled by the transfer of valuable information to the offshore site.

Such information and training enables the remote workers to produce results of comparable value previously produced by internal employees. When such transfer includes protected materials, as confidential documents and trade secrets, protected by non-disclosure agreementsthen intellectual property has been transferred or exported.

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The documentation and valuation of such exports is quite difficult, but should be considered since it comprises items that may be regulated or taxable.

Debate[ edit ] Offshoring has been a controversial issue spurring heated debates among economists, some of which overlap those related to the topic of free trade. It is seen as benefiting both the origin and destination country through free tradeproviding jobs to the destination country and lower cost of goods and services to the origin country.

This makes both sides see increased gross domestic product GDP. And the total number of jobs increases in both countries since those workers in the origin country that lost their job can move to higher-value jobs in which their country has a comparative advantage.

On the other hand, job losses and wage erosion in developed countries have sparked opposition to offshoring. Experts argue that the quality of any new jobs in developed countries are less than the jobs lost and offer lower pay.

Economists against offshoring charge that currency manipulation by governments and their central banks causes the difference in labor cost creating an illusion of comparative advantage. Further, they point out that even more educated highly trained workers with higher-value jobs such as software engineers, accountants, radiologists, and journalists in the developed world have been displaced by highly educated and cheaper workers from India and China.

Preeg testified before the Senate committee on Banking, Housing, and Urban Affairs that China, for instance, pegs its currency to the dollar at a sub-par value in violation of Article IV of the International Monetary Fund Articles of Agreement which state that no nation shall manipulate its currency to gain a market advantage.

Europe experienced less offshoring than the U. Legal implications in Japan[ edit ] Japanese companies use offshoring to exploit foreign laborers, particularly Chinese and Vietnamese, in violation of the Employment Security Act and Labor Standard Act guidelines set by the Japanese Ministry of Health, Labour, and Welfare.

The laws apply if at least one party among suppliers, clients and workers reside in Japan, and if the workers are part of the integral part of the chain of command of the client company or the supplier: Competitive concerns[ edit ] InIT employment in the United States has recently reached pre levels [35] [36] and has been rising since.

The number of jobs lost to offshoring is less than 1 percent of the total US labor market. The total number of jobs lost to offshoring, both manufacturing and technical represent only 4 percent of the total jobs lost in the US.

Major reasons for cutting jobs are from contract completion and downsizing. Offshoring relies heavily on the mobility of two of these factors. That is, how offshoring affects economies depends on how easily capital and labor can be repurposed.

Land, as a factor of production, is generally seen to have little or no mobility potential. The effects of capital mobility on offshoring have been widely discussed. In microeconomicsa corporation must be able to spend working capital to afford the initial costs of offshoring.

If the state heavily regulates how a corporation can spend its working capital, it will not be able to offshore its operations. For the same reason the macroeconomy must be free for offshoring to succeed. Generally, those who favor offshoring support capital mobility, and those who oppose offshoring call for greater regulation.

Labor mobility also plays a major role, and it is hotly debated. When computers and the Internet made work electronically portable, the forces of free market resulted in a global mobility of work in the services industry. Most theories that argue offshoring eventually benefits domestic workers assume that those workers will be able to obtain new jobs, even if they have to obtain employment by downpricing themselves back into the labor market by accepting lower salaries or by retraining themselves in a new field.

Foreign workers benefit from new jobs and higher wages when the work moves to them. Offshoring faces criticism from labor scholars who argue that global labor arbitrage leads to unethical practices, connected to exploitation of workers, eroding work conditions and decreasing job security.

It was characterized primarily by the transferring of factories from the developed to the developing world. This offshoring and closing of factories has caused a structural change in the developed world from an industrial to a post-industrial service society.

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During the 20th century, the decreasing costs of transportation and communication crossed with great disparities on pay rates made increased offshoring from wealthier countries to less wealthy countries financially feasible for many companies.

Further, the growth of the Internetparticularly fiber-optic intercontinental long haul capacity, and the World Wide Web reduced "transportation" costs for many kinds of information work to near zero.CIO Magazine issue index of issues and subscriber information.

Outsourcing America: What's Behind Our National Crisis and How We Can Reclaim American Jobs [Ron Hira, Anil Hira] on benjaminpohle.com *FREE* shipping on qualifying offers.

Reveals just how much outsourcing is taking place, what its impact is and will be, and what can be done about the loss of jobs. One of the hottest topics in the news.

Computer networks fall into one of two very broad categories, a Local Area Network (LAN) and a Wide Area Network (WAN). LANs are something most of us interact with regularly and refer to networks like the one you have at home or the one you have.

Outsourcing America: What's Behind Our National Crisis and How We Can Reclaim American Jobs [Ron Hira, Anil Hira] on benjaminpohle.com *FREE* shipping on qualifying offers. Foreword by Lou Dobbs One of the hottest, most controversial topics in the news is the outsourcing of American jobs to other countries.

Outsourced jobs are extending well beyond the manufacturing sector to include white-collar. The IT Outsourcing Statistics / study from Computer Economics finds that organizations are increasing the work they send to outside providers.

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