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Essay / Research Paper Abstract
This 6 page paper looks at the different issues facing US companies when they consider or undertake outsourcing. The paper discusses the economic, political and social impact for the company, the employees and the customers and the way that this is being managed by US companies. The bibliography cites 8 sources.
Page Count:
6 pages (~225 words per page)
File: TS14_TEUSouts.rtf
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Unformatted sample text from the term paper:
political effects when undertaking this practice. Outsourcing may be defined as " A long-term, results-oriented relationship with an external service provider for
activities traditionally performed within the company. Outsourcing usually applies to a complete business process. It implies a degree of managerial control and risk on the part of the provider" (firmbuilder.com,
2007). If we look to the US, it was the cost issue that was the push factor behind the recent announcement by United
Airlines that 650 call centre jobs would be moved to India (Skertic, 2004). Outsourcing is expected to grow by 20% each year in the United States until the year 2008
(Lewis, 2004). In most cases the cause for outsourcing is cited as rising costs. In the case of United Airways one of the major factors appears to have
been the costs associated with a high staff turnover, 50 staff were leaving each month, this increased the recruitment and training budget beyond their cost constraints (Skertic, 2004). Of 588,000
jobs that are expected to be outsource this year it is mot only the wage costs that are a factor, but many of the associated costs, including health insurance costs
and legal costs. There are many areas of outsourcing, one of the major areas is IT. 69% of US companies outsource some part of their IT position (Bellsoft, 2005).
There are many drivers, cost is the most apparent, but there is also the potential to increase the quality of the service, especially where there are services for smaller firms
that would not otherwise be able to afford to the same level of expertise, benefiting from the economies of scale as outsourcing firms have many clients and can afford to
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