Outsourcing of IT Jobs
Companies are under increasing pressure to compete in their marketplaces, thus they are looking at cheaper sources of labor outside of the United States to help cut costs. IBM has become one of the leading companies to follow this business strategy. However, organizations and management must now deal with new problems such as clashes of culture, customs, language, and even political pressure. Outsourcing is the newest trend that Corporate America is using to cut its costs. They are moving U.S. jobs overseas where the labor expenses are cheaper. "The outsourcing of America is shaping up as a seemingly inexorable trend, with various consultants estimating that the number of U.S. jobs shipped overseas will climb from the hundreds of thousands we have seen over the last few years to several million in 10 years. (Gumpert, 2004 p.1)." Corporations such as IBM, Dell, Microsoft, and American Express have participated in this strategy to cut costs. However, all of these companies will need
Along with training in American accents and geography, India's thousands of call-center employees are absorbing new ideas about family, material possessions, and romance. They must learn how to cope with the many cultural, political, economical, and social barriers that outsourcing has created. This has attracted many US companies, because they have waited for India to develop as a Western style consumer class. (2004) Outsourcing, Turned Inside Out. companies may also have to lower their expectations about the types of tasks workers overseas can do as well. They purchase everything from cell phones to motorcycles and make many of their purchases by using credit cards. (2004) For India's Youth, New Money Fuels A Revolution. Management Information Systems: Managing the Digital Firm (8th ed. In time, the benefits of outsourcing jobs will be significantly diminished.
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