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Essay / Research Paper Abstract
This 3-page paper examines the link between technology and productivity in an attempt to answer if outsourcing or boosted investment in information technology is the answer. Bibliography lists 6 sources.
Page Count:
3 pages (~225 words per page)
File: D0_MTcompprod.rtf
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Unformatted sample text from the term paper:
been the case? There are those who argue that in economic terms, information technology investment hasnt paid off, partly because of the trend in outsourcing.
Kraut et al (1998) point out that computing, or electronic networks, have helped a great deal with suppliers, as they help coordinate suppliers to a degree
of success. Instead of electronic networks being associated with greater outsourcing, the networks instead led to a larger dependence on internal production (Kraut et al, 1998).
Then there is the idea that investment in IT simply isnt paying off, though its difficult to really monitor productivity in this regard (Kramer and Dedrick,
2001). Still, authors Kramer and Dedrick point out that, in their minds, the productivity paradox isnt one any more, as, on average, IT spending does pay off. Managers should focus
instead on what they can do to maximize returns on their own IT investments (Kramer and Dedrick, 2001). This all leads down
to one question - what is the best investment? Outsourcing or more IT investment? At one time, most companies felt that the
way to truly cut costs was to outsource jobs to other countries where wages were lower and where overhead wasnt quite the issue. Furthermore, outsourcing permitted companies to free up
capital so they could focus on increasing and improving their core competencies (Ghemawat and Hout, 2008). However, economist Thomas Palley says that
trends might be shifting the other way, that companies are either rethinking their offshoring model or are actually bringing the jobs back to the U.S. (HR Focus, 2008). He points
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