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Essay / Research Paper Abstract
This 5 page paper presents a general discussion of outsourcing including the definitions of outsourcing and offshoring. The writer reports the activities that are most often outsourced and where to. The paper also reports some of the hidden costs of outsourcing. Bibliography lists 4 sources.
Page Count:
5 pages (~225 words per page)
File: MM12_PGoutsa9.rtf
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Unformatted sample text from the term paper:
& Noorlander 2008). Offshoring means that a company contracts with persons or a group in another country to perform certain tasks or jobs (Ginsburg & Noorlander 2008). People get confused
and perceive outsourcing as contracting with firms in other countries exclusively but a company outsources when they contract with a local or domestic company or group. There are many
reasons to outsource certain jobs or activities. The driving force is to save costs and become more efficient. When a company outsources non-core activities, they have more time and other
resources to spend on their core competencies, which will lead to a competitive advantage. Recent surveys show that more companies are outsourcing "back office work, including accounting and human resources"
(DAmico 2009, p. 28). And, more of that work is going to emerging regions such as India (DAmico 2009). This is a trend that is expected to continue because it
is cost-efficient (DAmico 2009). By 2010, some analysts estimate that India will gain more than 350,000 jobs from other countries in the areas of information technology, procurement, finance and human
resources (DAmico 2009). That will increase the aggregate total of outsourced jobs from across the world to all emerging regions to more than 800,000 (DAmico 2009). Aitchison (2008) reported there
have been a number of changes in the outsourcing industry. The first is the dramatic increase in the demand for global outsourcing companies (Aitchison 2008). However, companies in Europe, the
United Kingdom and the United States are now looking more for value than just a cheaper price (Aitchison 2008). This author says that outsourcing companies will need to improve their
services to remain competitive (Aitchison 2008). Information technology (IT) are especially looking for value-added contracts with outsourcing companies (Aitchison 2008). One thing IT managers are looking at is the
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