Outsourcing

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Outsourcing research papers show that outsourcing is hardly new. Even the smallest and most localized firms learned long ago that it is easier and less expensive to purchase some services their companies need rather than to hire their own employees to perform them. Use of contracted-for personnel has proved not only to be more efficient, but more cost-effective at almost all levels of business, in virtually every sector. Cleaning, building maintenance and property management firms were among the first to organize around this relatively simple principle, with the bookkeeping and more formalized accounting sectors close behind.

But the outsourcing industry has come a long, long way from emptying wastebaskets and polishing corporate culture or handling payroll and taxes off-site in the last three decades. Outsourcing is now a vital industry of its own, one that enjoyed a steady growth throughout the 1990s and shows no signs of slowing in the new millennium. With the advent of Internet-based businesses and the flourishing global e-commerce they sustain, outsourcing is becoming positioned more and more often not only as the tactical tool it has been for decades, but also as a means of gaining strategic advantage over competitors.You paper will want to examine the following:

1. The extent to which outsourcing is presently positioned in your chosen country
2. Look at what types of industries outsource the most
3. Where are most companies outsourcing to?
4. Has outsourcing increased or decreased over the last decade?

Although some experts argue that outsourcing is supposed to have a positive impact on the U.S. economic condition, there is identifiable evidence that outsourcing jobs to foreign countries has actually exhibited a negative impact at the level of the American worker. The trend in outsourcing was first manifested in manufacturing as American firms began to increasingly outsource the manufacture of their products to foreign countries. Unfortunately, the loss of jobs in manufacturing due to outsourcing was largely insufficient to raise the concern that now exists, which might be attributed to the fact that the loss of jobs in manufacturing could be traditionally counted on to bounce back with the economy.

At the same time, white collar jobs are now proving just as vulnerable to the trend of outsourcing as blue collar jobs. The impact of outsourcing is especially dramatic in the information technology (IT) industries, a phenomenon that is also especially ironic when considering the fact that experts had predicted that IT jobs would actually work to usher in a new economy by replacing the jobs lost to outsourced manufacturing operations. Mid-level white collar jobs are being lost on a regular basis to foreign countries, with repercussions severe enough to prompt as many as 31 states to introduce "measures banning state agencies from entering into contracts with companies that would send contracted jobs outside of the United States".

Such legislation is due, at least in part, to the failed promise of "the creation of higher level jobs for displaced workers" as one of the projected "positive consequences" of outsourcing. Statistics show a net private sector loss of as much as a 3 million jobs since 2001, a phenomenon that is typically reversed in the U. S. when the economy turns around however it is a reversal that has always been dependent on the assurance of strong manufacturing sector. Unfortunately, outsourcing has also weakened the American manufacturing sector, making job loss and unemployment in both IT and manufacturing as a result of outsourcing a permanent condition for many U. S. workers.