Outsourcing in the IT Industry

Paper Summary:

This paper uses IBM as a primary example of business outsourcing. The paper looks at the information technology industry itself, the corporate policies of IBM, and all of the various political and social arguments for and against IBM's practice of outsourcing. The paper attempts to determine if the 'dot.com' collapse is a rational explanation for the shift of the industry overseas, or whether it is merely another excuse for high profits and a corporation-centered political, social, and economic worldview.

From the Paper:

"Nevertheless, this same New York Times article makes reference to the opposing point of view. Says Phil Friedman, Chief Executive of Computer Generated Solutions, a 1,200-employee computer software company, "Once those jobs leave the country, they will never come back. If we continue losing these jobs, our schools will stop producing the computer engineers and programmers we need for the future." Mr. Friedman's statement points up the central argument of the outsourcing debate: What is the real reason major corporations are so eager to send their jobs overseas and into developing nations like India, and the People's Republic of China? There can be no argument that IBM's main businesses demand a high level of worker skill. These are the sorts of positions that require a college education along with often considerable amounts of on-the-job experience and expertise. No doubt, these individuals also command high salaries, and the equipment with which they work is likewise expensive."

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