Outsourcing and its Effects on New York's Economy

Introduction

The world in which we live today is moving at a rapid pace. A lot of changes are taking place as a result of the technological developments, methodologies and technological advancements. In order to stay abreast with the rest of the world it becomes indispensible for organizations and the management that they should adopt ways through which they can acquire latest technologies and methodologies and can make an attempt to reduce the cost. One of the methods that the organizations and management uses is of outsourcing. By adopting the method of outsourcing management of the organization succeed in reducing the overall cost but they fail to measure and to take into account the impacts that the usage of the technique of outsourcing can create. The aim and objective of this paper is to talk about the impacts of the outsourcing and its impact on the economy. This paper particularly aims to talk about impact of the outsourcing on the economy of New York.

Discussion

Outsourcing means to use an external source or resource. In outsourcing, certain business processes or business functions of the organization are transferred on the basis of the agreement to another company that specializes in the field. In this way, the people who used to do the work that is outsourced become jobless. It increases unemployment rate. Another factor is that in this way, the location, say New York that outsource any of the process to another country or place then in this case the people of New York would never be able to develop expertise in that area or process that is outsourced. In this situation, New York would never be able to specialize and would always remain dependent on others. The presence of a business process outsourcing is a hallmark of various other forms of service delivery and customer service. The main source of cost savings through outsourcing is to increase the efficiency of the enterprise as a whole and the emergence of the possibility of release of appropriate institutional, financial and human resources to develop new areas or to concentrate on existing ones, requiring attention (Brustein, pp. A-1).

The usage of the technique of outsourcing is also not very new and uncommon in New York. There are number of organizations that are using the technique of outsourcing. The usage of the technique of outsourcing in New York started with the ...