Outsourcing to Foreign Countries

Paper Summary:

This paper discusses businesses outsourcing to foreign countries. It suggests that outsourcing is a phenomenon of the new market economy which offers more benefits in the long term for the individual firm as well as the economy of the world on the whole. The paper looks at the advantages and disadvantages of outsourcing and concludes that overall it is more advantageous than not outsourcing.

Table of Contents:
Thesis Statement
Background
Difference between Outsourcing and Sourcing Out
Benefits
IT Outsourcing
Focus on Core Competencies by the United States
Help to Developing Countries
Insourcing VS Outsourcing
Directives and Legislation
Conclusions

From the Paper:

"There has been a lot of criticism of late with respect to shifting of thousands of jobs and positions overseas. However insourcing also takes place when foreign companies look for opportunities within the bounds of United States. Over the years foreign companies have also established jobs in the United States. The example of heavy manufacturing is given in this regard in which both outsourcing as well as insourcing took place. North Carolina in particular has benefited from the insourcing by the foreign companies. "Since the mid-1990s, foreign companies have added 400,000 jobs in these industries in the U.S. Over the same time period, U.S. companies moved 300,000 jobs to foreign countries in the same sectors. The insourced jobs in these industries are also high-paying, with average compensation per employee of over $ 65,000" (Walden & Reynolds). Today the world exists without the economic borders. Opportunities exist for both insourcing and outsourcing. The idea is to market the strong points that foreign companies can utilize when they look towards United States."

Sample of Sources Used:

• Antonucci, Y. (1998). The Pros and Cons of IT Outsourcing. Journal of Accountancy. Vol. 185.
• 'Can Outsourcing Be Bad for US, Good for Asia?' (March 28, 2004). Manila Bulletin.
• Barrera, A. (September 21, 2004). Fair Exchange: Who Benefits from Outsourcing? The Christian Century. Vol: 121. Issue: 19.
• Marks, J. (May 2004). The Outcry over Outsourcing: A Debate Rages throughout State Capitols over the Loss of American Jobs to Foreign Countries. State Legislatures. Vol: 30. Issue: 5.
• Walden, M. & Reynolds, W. (February 2, 2004). "INSOURCING" - When Foreign Companies Establish Jobs in the U.S. Washington Council on International Trade. Retrieved on June 03, 2006 from: http://www.wcit.org/topics/imports/outsourcing_2-04.htm.

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