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The Effects of Corporate International Outsourcing

Essay by   •  May 13, 2011  •  Essay  •  333 Words (2 Pages)  •  2,480 Views

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The practice of outsourcing jobs to foreign countries may seem new but in reality it has going on for the past 40 years. Starting in the 1960's many US corporations started moving prized manufacturing jobs overseas. This replacing of American workers for foreign workers saved the companies in not only wages but in lack of health insurance, taxes as well location expenses. This pattern has taken on new wings today and many American workers feel betrayed. This new or not so new way of corporation competing in a global market begs the questions: Is outsourcing a benefit for Americans and what are the implications for all parties involved?

In an article from World and I magazine titled Outsourcing America, the author discusses the advantages and disadvantages to outsourcing American job abroad.

Outsourcing has become a big part of most companies' information technology areas. Most big corporations feel with all strategic IT decisions required daily managing such things as application testing could be done offshore. Not only would it be less costly but also require less overhead. The choice to outsource a department or service is mainly done as a cost saving effort as well as use current resources for areas which require more hands on. When outsourcing a service the company can benefit from sometimes higher quality in that area when dealing with vendors who provide resources with higher more concentrated knowledge of the subject area.

Wipro Technologies is one of the largest Indian outsourcers supporting American companies today. It currently provides offshore resources to five of top ten most innovative companies in the world as well as being the only Indian company to be ranked among the top 10 global outsourcing providers in IAOP's 2006 Global Outsourcing 100 listing. The company currently has 647 clients (majority American corporations) and more the 70,000 employees worldwide. With accolades like that it's no wonder companies are flocking at the opportunity to partner with them. As companies like this extend its footprint into US companies



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