Jesse Johnson
Chapter 2 outsourcing

Outsourcing | Advantages | Disadvantages | Low cost is the primary reason most companies outsource overseas. The time difference can also be a plus: You can send your changes to your team at the end of your business day, and have the code ready when you wake up the next morning. | The old adage “you get what you pay for” often holds true. Managing people thousands of miles away is difficult at best, so when calculating costs, consider that you may need to pay someone to oversee your overseas contractors. Language or cultural barriers can add to the complexity, and different time zones can cause as many problems as they solve. | Sending jobs to other countries stimulates trade and actually creates a stronger economy in the U.S., and in the long run, more jobs. According to this theory, once lower-skilled jobs leave the U.S., the higher valued jobs are left for the Americans to snap up. However, this is tough to swallow for employees in the U.S. who are facing the possible loss of jobs and a tougher job market. | The loss of jobs here in the U.S. even in the midst of a strengthening economy. Although the global outlook supports outsourcing in both IT and manufacturing, Americans are trying to resist the push to send jobs overseas |

Today, some of the world’s largest companies and biggest employers are the product of this outsourcing trend: Sodexo in food service; IBM in information technology; Wackenhut, now known as G4S, in security services; UPS and FedEx in logistics; Foxconn and Lenovo in computer manufacturing. Instead of the Rouge plant, the new model of industrial organization has become Nike, which outsources the making of all of its shoes, clothing and sporting equipment so it can concentrate on design and marketing, and Apple, which outsources all of its hardware manufacturing. I definitely believe that that outsourcing of jobs has benefited the United States. It has made room for more jobs and also helped create relationships with overseas partners. The economy is steadily rising and the technology constantly increasing. In time outsourcing will be almost second nature I believe.