Is Outsourcing Positive? :: Globalization, Technology, Businesses, Financial

Is Outsourcing Positive???Outsourcing- outsourcing (out sr s ng, -s r -) n. <business Paying a nonher telephoner to provide services which a company might otherwise have employed its own staff to perform, e.g. softwargon system development(dictionary.com) Outsourcing is becoming a common occurrence for industries in the United States. In order to save money, time, and employees, companies atomic number 18 hiring outside businesses to conduct operations for them, curiously in the technology field. Many companies are choosing to use outsourcing. For example, government agencies are outsourcing. Offshoring is going on to some degree in just rough every State Government. At least 18 firms that specialize in offshore outsourcing are positioning themselves in no fewer than 30 States to capture a large share of the State Government market, particularly in IT services, said the study, titled Your Tax Dollars at Work... Offshore How contradictory outsourcing firms are capturin g State Government Contracts. (sify.com) Unfortunately, most state governments do non even realize they are offshoring. Many governments subcontract work and never bother to find out where the work is actually being done. They walk out that, because the company has a US office that the work is done in the US. However, there are several companies that simply have an office in that state but actually are owned by a parent company in another country. As subcontracting is common, States are much unaware of the exact identity and location of the company that ultimately performs the work. (sify.com) Companies are outsourcing for several reasons. Mainly, it can save a company a allot of money. If a business can outsource to another company, locally or internationally, and get a job done cheaper than if they did it in house, why would they not? Information technology is one of the most common outsourced areas. This can be for several reasons. It is extremely expensive and tim e consuming to set up ones own IT section. A company may as well not have the resources and people to run such a department (cica.ca) Outsourcing is also a common option for minimizing start-up times and avoiding the high cost of entering new markets (cica.ca) Next, outsourcing can by used for efficiency. The outsourced IT company testament be better versed in what technology would fit a particular business. Outsourcing often provides access to advanced technology that can gist in distinct technical leadership.