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Essay / Research Paper Abstract
This 14 page paper discusses various aspects of offshore outsourcing including the issues it raises, problems, benefits and risks. Offshore outsourcing has been used by companies in different industries since the 1980s but the practice has increased significantly in recent years. The employees that has been hurt the most by this practice in recent years are software programmers. A number of issues surrounding outsourcing are discussed. Bibliography lists 11 sources.
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14 pages (~225 words per page)
File: D0_Offshore.doc
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in India. Besides that, this manager tells you that they will replicate the hardware, operating system, database, procedures and methodologies and networking environment you are using. And, they will do
all this at half what it is now costing your firm. Here is an offer that is hard to refuse, especially in times when project development in companies is typically
behind schedule, costs are ever-increasing, and companies must continually fight to stay competitive (Yourdon, Rubin and Mohnot, 1996). Proponents of offshore outsourcing allege the practice saves money, decreases time
to market, avoids capital expenditures and they are able to use a pool of programmers who already possess specialized skills instead of taking the time and money to hire new
employees or to train those already working for the company (Yourdon, Rubin and Mohnot, 1996). Opponents argue that information is becoming a more and more valuable and essential asset to
any company and companies who outsource their application development may find they are, in effect, giving away the store. Further, they argue companies who outsource could have problems with incompetent
vendors as well as with cultural and logistics barriers (Yourdon, Rubin and Mohnot, 1996). Outsourcing in many industries is becoming more and more prevalent. Businesses say they cannot compete in
the market if they pay the salaries of American workers so they outsource to cheaper labor markets. Some companies have alleged they would have gone out of business if they
had not become involved in offshore outsourcing. Whatever the reasons, one fact is certain, Americans are losing jobs through the practice of offshore outsourcing. Unions have also alleged that companies
use outsourcing as a threat against their employees to accept contracts that are not as favorable as what the union is trying to negotiate. The unspoken threat is that the
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