Global Outsourcing in American Industry

Paper Summary:

This paper looks at the extent that American Industry relies on global outsourcing. It focuses on the dependency that the software industry has on labor markets in places such as India and the effects these kinds of practices have on the local economy and society.

From the paper:

"Outsourcing is the practice of subcontracting some or all of a company?s information systems services to another firm. The approach has been around for many years, and corporations have been subcontracting work to low-cost labor areas for years, but in the past, this practice was limited to data entry job. In the 1990s, outsourcing began to grow by 15% a year, according to the Yankee Group, and the approach generated a huge amount of discussion, attention and renewed interest among business leaders in the United States and abroad. "

From the Paper:

"Outsourcing is the practice of subcontracting some or all of a company's information systems services to another firmThe approach has been around for many years, and corporations have been subcontracting work to low-cost labor areas for years, but in the past, this practice was limited to data entry job. In the 1990s, outsourcing began to grow by 15% a year, according to the Yankee Group, and the approach generated a huge amount of discussion, attention and renewed interest among business leaders in the United States and abroad. For instance, there were highly publicized, large outsourcing contracts by Eastman Kodak Company, Continental Bank, and General Dynamics, among other firms."

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