Benefits And Drawbacks Of Outsourcing - 962 Words

The development of the worldwide economy has resulted in the United States companies to outsource its operations to less costing labor. This consequently led to these companies seeking employees from developing countries. The outsourcing is an initiative taken by these companies to seek both the skilled and unskilled personnel to offer their services to all industries. The information technology industry has been one of the industries in the U.S affected by outsourcing. For this effect, the New York State legislative bill A. 8284/S. 2317 was endorsed by act on August 1st 2007 (â€Å"The Offshore†, 2010). The law allows the Commissioner of Labor to alter or affect a report on matters associated with the offshore outsourcing of IT jobs and the future of New York State’s job market (â€Å"The Offshore†, 2010). This paper bases its arguments on the benefits and some dangers associated with offshoring mostly in the IT sector in the U.S companies (Goloboy et. Al 209). It also explores the factors leading to offshoring of IT jobs to developing countries. A rough estimate of the jobs to be affected by offshore outsourcing and finally the state and civic legislation concerning this exercise (Goloboy et. Al 209). BACKGROUND INFORMATION Many countries have considered it sensible to use off shore locations to offer high-quality products at a reduced cost; this is because the current business environment aims at reducing the costs of operations. A survey conducted in the year 2005 â€Å"estimated thatShow MoreRelatedSelecting a Locale for Global Outsourcing1087 Words   |  4 PagesSelecting a Locale for Global Outsourcing Introduction: The process of globalization is changing the way that companies large and small must conduct business to survive. 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